Act not to apply to certain co-operative societies
Section 3 of the Banking Regulation Act, 1949 deals with act not to apply to certain co-operative societies. operative societies.--Notwithstanding anything contained in the National Bank for Agriculture and Rural Development Act, 1981 (61 of 1981), this Act shall not apply to-- (a) a primary agricultural credit society; The Act came into force on 16 Mar 1949.
1[3. Act not to apply to certain co-operative societies.--Notwithstanding anything contained in the National Bank for Agriculture and Rural Development Act, 1981 (61 of 1981), this Act shall not apply to--
(a) a primary agricultural credit society; or
(b) a co-operative society whose primary object and principal business is providing of longterm finance for agricultural development,
if such society does not use as part of its name, or in connection with its business, the words "bank", "banker" or "banking" and does not act as drawee of cheques.]
Section 3, The Banking Regulation Act, 1949 (Act 10 of 1949).
Related judgements & precedents
These are some judgments that construed this section, and hold precedence value. They hold authority on how to read, interpret and use this section.
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Kerala State Co-operative Agricultural and Rural Development Bank Ltd. Kscardb vs The Assessing Officer, Trivandrum
Court's Decision & Legal Precedent
A cooperative society which is not a state cooperative bank, central cooperative bank, or primary cooperative bank as defined under NABARD Act, 1981 and which does not conduct banking business as defined in Section 5(b) of the Banking Regulation Act (i.e., does not accept deposits from the public and does not hold an RBI license) is not a co-operative bank within the meaning of Section 80P(4) of the Income Tax Act, 1961, and is therefore entitled to claim deduction of the whole of its profits and gains of business attributable to providing credit facilities to its members under Section 80P(2)(a)(i) of the Act. The determination of whether an entity is a co-operative bank depends on: (1) whether it has been declared as a state/central cooperative bank by the State Government under NABARD Act, 1981; (2) whether it conducts banking business as defined (accepting deposits from public); and (3) whether it holds an RBI license under Section 22 of the Banking Regulation Act, 1949.
On this section: Provides that the Act does not apply to primary agricultural credit societies, co-operative land mortgage banks, and other cooperative societies except as specified in Part V. This exemption indicates that not all cooperative societies are subject to banking regulation.
The holding above is the ratio decidendi as extracted from the judgment by eCourts India, reproduced unaltered — it is a rendering of the court's reasoning, not a substitute for its words. Read the order itself before relying on it.
Made under this section, and citing it
2 instruments name this provision in its title or its text without being made under it.
Questions about Section 3
What have the courts held on Section 3 of the Banking Regulation Act?
Kerala State Co-operative Agricultural and Rural Development Bank Ltd. Kscardb vs The Assessing Officer, Trivandrum (14 Sep 2023) is the leading judgment on this section among those set out below: Provides that the Act does not apply to primary agricultural credit societies, co-operative land mortgage banks, and other cooperative societies except as specified in Part V. This exemption indicates that not all cooperative societies are subject to banking regulation.
How do I find court cases under Section 3 of the Banking Regulation Act?
In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: Banking Regulation Act 1949 3, section 3 Banking Regulation Act 1949, section 3 of the Banking Regulation Act. People searching for it also type banking regulation act schedule 3. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome. 1 reported judgment on this section is set out on this page, beginning with Kerala State Co-operative Agricultural and Rural Development Bank Ltd. Kscardb vs The Assessing Officer, Trivandrum (14 Sep 2023).
What should I read with Section 3 of the Banking Regulation Act, and has it changed?
2 instruments name it without being made under it, most recently Nomination of Shri Mukesh Kumar Ja, MD & CEO, OBC on the Board of Canara HSBC OBC Life Insurance Company Ltd. as Director, exempting the applicability (2018), then Banking Ombudsman Scheme 2006 (2005).
When did Section 3 of the Banking Regulation Act come into force?
Section 3 of the Banking Regulation Act, cited as Banking Regulation Act 1949 3, came into force on 16 Mar 1949, having been enacted on 10 Mar 1949. It is in force as at the date shown on this page.
Other sections of this Act
- 56. Act to apply to co-operative societies subject to modifications5544 words
- 45. Power of Reserve Bank to apply to Central Government for suspension of business by a banking company and to prepare scheme of reconstitution or amalgamation2310 words
- 10B. Banking company to be managed by whole time chairman1171 words
- 5. Interpretation1164 words
- 43A. Preferential payments to depositors1031 words
- 11. Requirement as to minimum paid-up capital and reserves988 words
Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Text as in force on 20 Oct 2026. This page is not a substitute for legal advice.