Faq's

What is Tirumalla Tirupati Multi State Co-Operative Credit Society Ltd.?

Tirumalla Tirupati Multi State Co-Operative Credit Society Ltd. has been registered as a Multi State Co-Operative Society under section 7 of the Multi State Co-Operative Society Act, 2002 (39 of 2002) and the rules framed there under. The registration number of the Society is MSCS/CR/784/2013 and the date of registration is 8th February 2013. The area of operation of the Society shall be confined to the States of Maharashtra, Karnataka and Goa. The bylaws filed by the society have also been registered.

How does the Society utilize the funds/deposits procured by it?

The Society uses the funds in lending to the members and investments as per the co-operative credit society Act/Rules/bylaws. Our lending will be in the shape of small loans for business & Micro Finance.

Are the deposits with the society safe & secured?

Yes, because the Government of India has framed the laws/rules to ensure the security and safety of deposits and Tirumalla Tirupati Multi State Co-Operative Credit Society Ltd. strictly abides by the rules and regulations framed by the Central Government. The Multi- State Co-Operative Credit Societies Act, 2002, provides as under Rule 66 - Restriction on loans (1) A multi- State co- operative credit society, other than a co- operative bank, shall not make a loan to a member on the security of his share or on the security of a non-member. Rule 67 - Restriction on borrowing (1) A multi- State co-operative credit society may receive deposits, raise loans and receive grants from external sources to such extent and under such conditions as may be specified in the bylaws: Provided that the total amount of deposits and loans received during any financial year shall not exceed ten times of the sum of subscribed share capital and accumulated Reserves.

What is the difference between Tirumalla Tirupati Multi State Co-Operative Credit Society Ltd. and Financial Companies?

As stated elsewhere the TTMSCCSL is registered under Multi state Co-Operative societies act and rules. Society is not a personal institution owned by an individual but is a fully democratic organization managed by a Board Of Directors who are elected by the members of the society at the Annual General Meetings and the Board Of Directors also takes decisions in a collective manner with total transparency.
The Department of Cooperatives constantly reviews the functioning of the society at regular intervals. Finance companies are usually owned by individuals and frame the so called policies according to the whims and fancies of the owners. The general members/ depositors/ Investors have no role to play. There are some possibilities of the absence of transparency. Members/ Investors have virtually no knowledge of the affairs/ legal provisions of N.B.F.Cs and the statutory liabilities of the N.B.F.C s are also limited. Tirumalla Tirupati Multi State Co-Operative Credit Society Ltd. is completely alive to its legal liabilities and answerable to its members through its elected members of the Board Of Directors. Books of accounts of Tirumalla Tirupati Multi State Co-Operative Credit Society Ltd. are the subject matter of Statutory Audit and the Audited Accounts are submitted to the government of India for review and further action, annually.

Why the TTMSCCSL is paying 'Higher Rate of Interest' to its members?

We believe in the principle of encouraging saving habits amongst our members. In the present context when tendency to save is on the decline and the consumerism is on the high. We want to ensure the financial and social well being of our members as a moral responsibility towards the Society. As a true nationalists we are convinced that higher the savings, higher the investment better the G.D.P.

How the Tirumalla Tirupati Multi State Co-Operative Credit Society Ltd. is able to offer Higher Rate of Interest as compared to the Rate of Interest of Commercial banks/ Financial Institutions?

There are varieties of natural and financial reasons which help the society by offering better Rate of Interest. A few of them are detailed below: - (a) Income earned by the society on account of Interest on loans/ advances granted to members which contributes a major part of society's Income is exempt from Income Tax as per section 80P of Income Tax Act. Therefore the society is able to save huge amount which could have otherwise been paid as Tax. The Board of Directors of the society always felt that some portion of this should be passed on to the members by offering higher Rate of Interest and this is what our corporate philosophy is.
(b) Cash Reserve Ratio: - Banks and other financial institutions have to keep about 4 to 5 percent of their deposits in cash or with Reserve Bank of India as per R.B.I. regulations. An amount so kept does not earn any interest and reduces the banks' capacity of lending. While Tirumalla Tirupati Multi State Co-Operative Credit Society Ltd. is exempt from this provision, we keep minimum cash in hand to meet the day to day requirements and therefore are in a position to lend more.
(c) Statutory Liquidity Ratio: - Banks have to keep almost 25 to 30% of their deposits in different type of securities which earn them less interest as compared to the Rate of Interest prevailing in the market.
(d) The Tirumalla Tirupati Multi State Co-Operative Credit Society Ltd. is exempt from maintaining Cash Reserve Ratio & Statutory Liquidity Ratio. The Tirumalla Tirupati Multi State Co-Operative Credit Society Ltd. has better opportunities of managing its funds and earning interest thereon which it is doing sincerely and passing on the benefits of such income to its members/ Investors by offering the best rate of Interest.

Who should invest with Tirumalla Tirupati Multi State Co-Operative Credit Society Ltd.?

All those investors/depositors who are keen to get better returns/interest on their deposits in the short term, medium term and long term. So all of you are welcome.