provisions of the existing Ordinance in this respect.
49
Dr. Smoira thought provision should be made for partnerships
to operate as Banks but as the need for permitting partner-
ships to conduct banking business has not become apparent
and as the disadvantages of the present situation in which
partnerships are not permitted to do so are not apparent,
we do not consider it within the scope of our present task
to make recommendations on the matter.
47. We feel generally that the larger Co-operative
Banks and Societies, which largely function on deposits from
non-members are in this respect not different from
commercial Banks and should therefore be subject to the
restrictions of the Banking Ordinance, although we agree
that the smaller societies which are mainly of the nature
of village and small urban thrift societies should be left
to the general supervision of the Registrar of Co-operative
Societies; but even so we think that it is most
undesirable that such societies which are not subject to the
restrictions of the Banking Ordinance should be permitted
to call themselves Banks. We, therefore, recommend that
Co-operative Societies which receive deposits from non-
members exceeding a total of £P. 10,000, or such other
maximum as may be determined by Order of the High
Commissioner, and Societies which are called Banks shall
be subject to the restrictions of the Banking Ordinance.
We also think that provision should be made in the Ordinance
to the effect that Co-operative Societies holding deposits
from non-members in excess of the approved limit which do
not register under the Banking Ordinance should, within a
period of twelve months from the date of the Ordinance,
reduce the amount of such deposits to the limit so fixed
provided that the Registrar of Co-operative Societies may
at his discretion extend the period in suitable cases by a
further period not exceeding twelve months.
48.