Funds and Surety


1. Every member has to mark his/her specimen signatures in the membership register available only at the Corporate Office, immediately after approval of the application for membership.

2. Society will also issue a computerized photo identity card free of cost for which every member has to visit the Society office. Every member has to produce the I- Card while receiving any payments from the Society. If a member lost his/her I-Card, he/she should immediately report it to the Society and pay Rs. 50/- for a duplicate Identity Card.

3. If a member is not in a position to make the payments in time for one or more months, he should inform the Managing Committee by writing in advance, showing sufficient cause, so that M.C. may consider it sympathetically. In such cases the member will not be treated as a defaulter. However penal interest @3% will be levied.

4. Payments are accepted in cash, cheque, internet transfer, NEFT/RTGS and drafts. Money orders are not accepted. Properly stamped receipts may be collected from the office at the time of making payments. Society will not be held responsible for payments made to any unauthorized person and/or without a proper stamped receipt. Members can make advance payments and can also deposit post-dated cheques, which will be presented as per instruction of the Members from time to time. The Society will not be responsible for any delay/misplacement of cheques/ drafts. Receipts can be obtained by post by enclosing a stamped self-addressed envelope. In case of Net Banking/ RTGS payment should reflect in our Bank before 2 working days of the closing date with intimation to the Society through its official E-mail.

5. Resignation/Withdrawal of Membership: A member can resign/withdraw his membership after 3 months’ notice in writing, provided that the member does not owe anything to the Society, and is not a surety for an unpaid debt. Resignation/withdrawal will take effect from the date of disposal of his shares as provided in the Bye-laws and Rs.300/- is charged from those members as ‘Share Transfer fee’.

6. Members should inform the Society in writing within 14 days in case of any change in name, marital status, residential address and employment.

7. Nomination facility is available. In case of death of a member the deposit/Share Money will be refunded to the nominee only.

8. Duplicate Pass Book/Identity Card will be issued on payment of Rs. 25/- for first and Rs. 50/- for every subsequent loss.

9. At the beginning of every quarter, the Society brings out a Bulletin highlighting the latest developments and financial position of the Society. Members are requested to collect the same at their own interest from the Society. It can also be had from the M.C. members, Advisory Committee Members, branches and by E-mail and WhatsApp. It’s available in the Society’s Website also.

10. AGM is held every year. Views and suggestions are always welcome and are implemented as far as possible.

11. RESTRICTION IN ACCEPTING CASH: All payments to Society (in a day) amounting to Rs. 20,000/- and above is strictly accepted by cheque/ RTGS/NEFT/online transactions only. However, a member can deposit less than Rs. 20,000/- in a day and less than 2 Lakhs in a financial year by cash towards deposits accounts/re-payment of loans. Similarly all kind of payments and refund of deposit etc. above Rs. 10,000/- to members are made in cheque/RTGS/NEFT/ online transactions.

12. Most Important - M.C. may change or alter the above conditions from time-to-time. For latest information please refer the quarterly bulletin or website.


1. A member can stand as surety after completion of 3 full months of membership. He/she can stand as surety to the extent of ten times his share value as well as take a loan of an equivalent amount or he/she can stand surety for twenty times of his/her share value without availing the loan facility him/herself. For example, a person having 20 shares at his credit can take a loan of Rs.1,00,000/- and stand as surety to 4 members for Rs. 1,00,000/¬each or 2 members for Rs. 2,00,000/- each.

2. Number of sureties required for loans is as under:

  • a) For loan upto Rs. 2,00,000/-: Three sureties.
  • b) For Rs. 2,00,001/- to Rs 5,00,000/-: Four sureties.
  • b) For Rs. 5,00,001/- and above: Five sureties.

3. Sureties are liable to pay the principal loan, interest, penalties and other charges jointly & severally in case of default by the loanee. Deposits of sureties, their spouse and dependents are also liable to be deducted/ adjusted in case of default.


The M.C. reviews Accounts and Finance position every month. Annual audit is done by a Chartered Accountant appointed by the Registrar of Co-operative Societies (RCS) Delhi, and is submitted to RCS. After approval of the same by RCS, the management presents it in the AGM held every year. Members can also verify accounts in case of any doubt/discrepancy. Dividend is declared at the AGM.


When a member becomes a defaulter and the M.C feels that the recovery of the outstanding loan is doubtful, the matter may be brought to the notice of the loanee/sureties. Since the sureties are jointly and severally responsible for the said loan, the M.C. may take action to recover the dues and other charges from the sureties and their spouse/dependents. Even then, if the full amount is not recovered, M.C. may file an Arbitration case against the defaulters and sureties. Once the Arbitration case is filed, it will not be withdrawn by the Society, till total loan balances along with other charges are deposited/recovered. After the proclamation of ‘Award”, the Collector will issue a Warrant. If the amount is not deposited within the specified date, arrest warrant may be issued and the defaulter and the sureties (the Judgement Debtors) shall be awarded imprisonment for 40 days. If even after the arrest of the Judgement Debtors the amount is not recovered, assets of the Judgement Debtors’ shall be attached/auctioned.

WELFARE FUND (REVISED w.e.f 01-04-2023)

1. It is almost a free insurance cover to the Members. In case of death of a member who has completed 35 years of membership period, an amount Rs. 2,00,000/- is paid to the spouse or dependents of the member as a welfare assistance. In case of new members below 5 years Rs. 25,000/-; after completion of 5 year and below 10 years Rs.50,000/-; after 10 years and below 15 years Rs.75,000/-; after 15 years and below 20 years Rs.1,00,000/-; after 20 years and below 25 years Rs.1,25,000/-; after 25years and below 30 years Rs.1,50,000/-; after 30 years and below 35 years Rs.1,75,000/-; after 35years Rs.2,00,000/- will be given. However, defaulters for 6 months and more are not eligible for this welfare assistance. If the deceased member is a loanee, adjustment of this amount will be made to the extent he/she is indebted to the Society and only the balance will be paid, as the case may be.

2. Members are requested to inform the Society about the death of any of our members or their spouse/kin (known to them) as soon as possible, so that the representative of the Society shall visit the bereaved family and also attend the funeral on behalf of the Society.

3. Since all the members are part of this big family Southern Star, the M.C. is concerned about the health of all the members. Hence, the M.C. must be informed about any accidents, serious illness, marriage, etc. in their family.

New Member & below 5 years


5 years to below 10 years


10 years to below 15 years


15 years to below 20 years


20 years to below 25 years


25 years to below 30 years


30 years to below 35 years


35 years & above