(1) In any year a Co-operative Society shall allocate
towards a deficit cover fund, reserve funds, deferred
payment to members as patronage rebate in proportion to
their use of the Co-operative Societies services and
payment on share capital of interest not exceeding the rate
of interest paid by scheduled banks such percentage of the
surplus arising from its business transactions in the previous
year, as may be approved by the general body.
(2) Reserves created under sub-section (1) shall be costed by crediting on annual interest equal to the rate paid by scheduled banks on fixed deposits.
(2) Reserves created under sub-section (1) shall be costed by crediting on annual interest equal to the rate paid by scheduled banks on fixed deposits.