Cooperatives Required To Maintain 10 Percent Liquidity
February 17, 2022 | Investopaper
Cooperatives now have to maintain at least 10 percent liquidity every day. The Department of Cooperatives, the regulatory body, has made the provision through integrated directives. In case of less than 10 percent liquidity, the manager has to inform the board of directors and work for immediate improvement to maintain the directed liquidity.
The directive also prohibits cooperatives to advertise or publicize using social media such as Tiktok, Viber, Facebook, electronic print media and engage in any other tempting activities such as lottery gifts for membership, savings and loans etc.
Similarly, the directive also stipulates that cooperatives with bad loans of more than 5 percent of the total credit flow will not be allowed to distribute dividends.
