What changed
Earlier, Mahila UCBs could only have women as members, except for nominal male members acting as sureties. Now, existing Mahila banks that meet the general entry point capital norms can enrol male members up to 25% of their total regular membership, subject to bye-law compliance and Registrar approval.
What it means for you
This relaxation addresses the difficulty Mahila banks faced in finding creditworthy borrowers due to the all-women membership restriction. Banks can now expand their borrower base, potentially improving asset quality and growth, while still maintaining a majority women membership.
What you must do
- Verify your bank meets the general entry point capital norms before enrolling male members.
- Ensure male membership does not exceed 25% of total regular membership.
- Obtain approval from the concerned Registrar of Co-operative Societies if required.
- Update internal policies and bye-laws to reflect the new membership rules.
Who it affects
Mahila Primary (Urban) Co-operative Banks, Registrars of Co-operative Societies, Women borrowers and members of Mahila UCBs
Can Mahila UCBs now enrol any male member?
Yes, but only existing Mahila banks that meet the general entry point capital norms can enrol male members, and only up to 25% of their total regular membership. Male members cannot exceed this limit.
Do we need any external approval to enrol male members?
Yes, approval from the concerned Registrar of Co-operative Societies or Central Registrar of Co-operative Societies must be obtained wherever applicable.
What about proprietary or partnership firms? Can they have male members?
For firms or companies to become members, the majority shareholding must be held by women. This rule remains unchanged.