“Are the agreements prepared for your credit society in accordance with the Contract Act, other applicable laws, and the provisions in your bylaws? This must be verified; otherwise, it would have to be said that your society’s investment of crores of rupees is blindly being put at risk.”
Whether your credit society is small or large, every society is required to prepare at least 17–18 types of agreements. As the society grows, the number of these agreements also increases. In the beginning, some basic agreements need to be drafted - such as loan agreements, employee agreements, pigmy agent agreements, gold valuer agreements, rent agreements, etc. At a slightly advanced level, agreements with CBS vendors, or with furniture and other establishment vendors during branch expansion, also need to be prepared. Further, more complex agreements - like those with companies providing digital facilities such as mobile banking, UPI, and internet banking—also have to be made. Generally, the drafts of such agreements with digital service providers are prepared by those companies themselves. The language in these agreements is often technical, and therefore, societies may not fully understand them as they are. (To continue, open the magazine)