The face value of each share of the bank shall be Rs.1,000/-. The full value of the share shall be paid in one lump sum, alongwith the application.


  1. A member shall have minimum share capital of one thousand rupees;
  2. A member shall have minimum deposit of five thousand rupees; or if the member is desirous of availing a loan, the amount of loan requested subject to the limit fixed by the bank; or a member shall have at least ten operations per annum in his current or savings bank account maintained with the bank.
  3. The deposit mentioned above shall be the aggregate amount of all types of deposits (demand and time) maintained with the bank throughout the year.
  4. The direction issued by the Reserve Bank regarding 'know your customer (KYC)' shall be applicable to every member of the bank.
  5. The loan amount shall be the limit sanctioned by the bank and utilised by the member. This shall be applicable for the entire loan period.


  1. Any member may resign his membership of the Bank if he has held the shares for a period of at least one year and give his one month's prior notice and he has completely discharged his liability to the bank both as a borrower and as surety. The resignation thus tendered shall be accepted by the Board.
  2. The resignation shall come into effect from the date of its acceptance by the Board
  3. The total share capital withdrawn and refunded in one year shall not exceed 10% of the aggregate share capital of the bank, as stood at the close of the preceding year.


  1. To facilitate easy identification of members of the Bank, the board will arrange to issue identity cards with their photographs. Every member shall supply the required number of photographs for the purpose. Such identity cards shall be used to enable the members to participate in the general body and other meetings, to exercise the right to participate in the election of the Board, contest and vote therein and for doing any other business with the bank.
  2. If the identity card is lost, the member may obtain a duplicate card after paying the fee prescribed by the board.
  3. If a member has not obtained the identification card, he shall have no right to participate in the meetings or elections and to contest or vote.


  1. A member of the Bank may nominate a person or persons to whom, in the event of his/her death, his/her share and other dues from the bank may be paid. Such nomination may from time to time be changed by applying for the same in writing and paying a prescribed fee. A nomination made by a member shall not be valid in the event of death of the member unless:
  • it is made in writing and is signed by the member in the presence of at least two witnesses; and
  • it is registered in the books of the bank for the purpose
  1. If the nomination made by a member subsists, is recorded in the books of the bank and valid, the share and other dues payable to the deceased member shall be paid by the bank to the person or persons so nominated as per clause (1) above.
  2. If no nomination is made or if the nomination so made is not valid,
  • if the aggregate of share amount and other dues payable by the bank does not exceed rupees one lakh, such amount shall be paid/transferred to who, in the opinion of the board, appear to be the heirs or legal representatives of the deceased member on the execution by such persons of a simple bond of indemnity along with sureties by furnishing necessary documents.
  • If the aggregate dues payable to the deceased member exceeds Rs. One lakh, the dues shall be paid/transferred to the legal heirs only when they produce succession/heirship certificate granted by a competent court.

NOTE: The nominee/nominees or the legal heirs or the legal representatives of the deceased who claim the dues shall be admitted as members of the bank, if such persons are eligible to become members of the bank as per byelaw. The entire amount of the dues payable to the deceased member shall be transferred to their account after such admission.

  1. The surety shall be liable as equally as a borrower in respect of loans taken from the bank.
  2. A surety shall be aware of the financial status, purpose of the loan and repayment capacity of the borrower before standing as surety.
  3. If the dues of a member are recovered through the execution of a decree of the court, such  a member shall not be eligible either to borrow or to stand as surety to other members for a period of 6 months from the date of closure of the loan.

The liability of a past member and the estate of a deceased member shall be governed by Section 25 of the Act. The Bank shall have a right of first charge on the members share amount, dividend and deposits in respect of any dues from the member. The bank shall have a right to adjust the amounts payable to member towards his dues.


  1. Except as otherwise provided in the Act, the rules or the byelaw, all subject shall be decided by a majority of votes of the members with right to vote present and voting at a general meeting.
  2. Every member shall have one vote irrespective of the number of shares held by him.
  3. A member who is a defaulter shall have no right to vote. A member shall be deemed to be a defaulter and shall have no right to vote at a general meeting/an election of the Bank, if he has failed to pay overdue amount of loan or arrears of any kind due to the bank at least 30 days before the date of such meeting/election, after notice of not less than 45 days before the date of such meeting/ election has been given to him.
  4. Where a registered society or a partnership firm, or a company or a body corporate or any other cooperative institution is a shareholder and which is not a defaulter may nominate a person to participate in the annual general meeting/election and exercise the right to vote.
  5. The following members shall have no voting right at a general meeting/election;
    an associate and a nominal member;
  • a member who has been considered as a defaulter;
  • a member admitted under section 16(1) (d), (e), (f) and (g) of the Act, which/who is a defaulter
  • a person who has become a member of the bank, within twelve months prior to the date of such meeting/election
  • A person who has failed to attend at least any two annual general meetings out of the last five annual general meetings has no right to vote for a period of one year;
  • a member who has failed to utilize such minimum services or facilities as may be specified in the bye-laws for any two co-operative years out of the last five co-operative years has no right to vote for a period of one year.

If no dividend is claimed for a period of three years from the date of declaration within three months from the date of notice the amount shall be credited to the reserve fund.

Notice in the annual report is sufficient for the purpose of claiming dividend as per byelaw of the Bank.



0824 - 2421369, 2445742

MCC Bank Ltd
Hampankatta, Mangalore - 575001

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0824-2421369, 2445742

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