1. Definitions & Interpretation

1. "Act" or "Cooperative Act": means the respective State / Multi-State Cooperative Societies Act under which the Society is registered along with all Rules, Bye-Laws, Circulars, Notifications thereunder.
2. "Bye-Laws": means the registered Bye-Laws of MicroFinance Cooperative Society Ltd., as may be amended from time to time, certified copy of which is available on request at any branch and on our website.
3. "RBI Directions": means master directions, circulars, notifications, guidelines issued by Reserve Bank of India (RBI) for cooperative banks / cooperative societies, as applicable, including but not limited to KYC Master Direction, IT Governance / Cyber Security Directions, Fair Practices Code, Deposit Protection etc.
4. "Account(s)": collectively means all or any of Savings, Current, Fixed Deposit, Recurring, Daily Deposit, Overdraft, Cash Credit, Loan Accounts (any type) and any other products as introduced by us from time to time.
5. "Digital Platform(s)": means official website microfinance.co.in, mobile banking application, internet banking portal, USSD, WhatsApp Banking, IVR, Call Center, and any other electronic delivery channels.
6. "Working Day / Business Day": means any day other than 2nd & 4th Saturday, Sunday and public holidays notified by our Head Office; NEFT/RTGS timelines are as per RBI.
7. "Force Majeure Event" means any extraordinary event beyond reasonable control including pandemic, lockdown, natural calamity, war, civil disturbance, government prohibition, cyber-attack on national critical infrastructure, prolonged internet outage of national ISP, RBI system downtime.

2. Membership — Eligibility, Admission, Rights & Obligations

2.1 Eligibility

1. Individual: Any person who has attained the age of majority (18 years), of sound mind, not debarred under any law, and residing / operating within the area of operations of the society.
2. Minors (age 10+): Joint account with natural / legal guardian only, per Minor Savings Scheme.
3. Entities / Groups: Proprietary concerns, partnership firms, LLPs, companies, trusts, societies, associations, SHGs, JLGs subject to prescribed KYC / documentation.
4. NRIs / PIOs / OCIs: Eligible subject to FEMA regulations and RBI directions (as applicable to cooperative societies) and on submission of valid KYC documents.

2.2 Membership Process

Membership application must be in the prescribed form along with (i) KYC documents (PAN + Aadhaar mandatory for resident individuals) (ii) one-time non-refundable membership fee as per chosen plan (Basic / Premium / Elite) (iii) 2 passport photos. Admission is subject to approval by the Board of Directors or Committee duly authorized. Membership ID shall be communicated via SMS & Email.

2.3 Member Rights

Every member in good standing shall have equal voting right (one member = one vote, irrespective of amount of shares / deposits held), right to contest elections to the Board as per Bye-Laws, right to receive share of profit / dividend as declared, right to apply for loans / advances as per eligibility criteria, right to inspect books of accounts as permitted under the Act.

2.4 Termination / Resignation / Expulsion

A member may resign from membership at any time by giving written notice of not less than 30 days. Society may expel a member for gross misconduct, fraud, misrepresentation, repeated default on loans, or act prejudicial to society's interest, in the manner prescribed under the Act and Bye-Laws, after providing reasonable opportunity of being heard. Resignation / termination does not absolve the member from any outstanding dues, loans, guarantees or liabilities to the society.

3. Deposit Accounts — General Terms

1. Opening: All deposit accounts will be opened only after completion of CKYC-compliant KYC verification and receipt of duly signed account opening form (AOF).
2. Minimum / Average Balance: Savings account zero balance option available for Basic & Elite category; Premium savings account: AMB ₹5,000 (non-maintenance charge ₹250 + GST per quarter, levied only if account remains below threshold for 3 consecutive quarters).
3. Interest Application: Savings interest at 4.5% p.a. calculated on daily product basis and credited quarterly on last working day of June / September / December / March. FD interest is compounded quarterly (unless otherwise opted) at contracted rate for chosen tenure. Senior citizens: 0.50% additional benefit on all FD/RD for age 60+ years (valid age proof mandatory).
4. Premature Withdrawal of FD / RD: Permitted after 3 months lock-in. Penalty of 1% on applicable rate. Zero penalty only for death of depositor or medical emergency (hospitalization). Alternate option of Loan against FD at 2% above FD rate available without breaking FD. (See clause 5)
5. Tax Deduction at Source (TDS): TDS on FD interest at applicable rates u/s 194A if aggregate interest exceeds ₹5,000 / ₹50,000 (Senior Citizen) in a financial year. Submit Form 15G / 15H before 30th April if income below taxable limit to avoid TDS. TDS once deducted will be refunded only by Income Tax Department on filing ITR (Society cannot refund it directly).
6. Nomination: Mandatory for all accounts. Nominee(s) updation / change permitted any number of times free of charge. Transmission of proceeds on death of depositor shall be as per nomination or legal heir documents per Society policy.
7. Dormant / Inoperative Accounts: Accounts without any customer-induced transaction for 24 months are marked as Dormant. Reactivation requires fresh KYC and visit to branch (or video KYC). Interest on savings account continues even during dormancy.
8. Unclaimed Deposits: Deposits & interest remaining unclaimed for 10 years or more from due date shall be transferred to "Depositor Education and Awareness Fund" maintained as per regulatory requirements. Claim may be made by rightful owner along with valid documents at any time — principal plus interest till date of original maturity shall be paid.

4. Loans & Advances — General Terms

1. Sanction at discretion: All loan sanctions are at the absolute discretion of the competent Credit Authority. Eligibility criteria include repayment capacity, income, collateral, credit score (CIBIL 650+ for most products), past track record with us, industry outlook, regulatory caps. Society is not bound to sanction any loan even if eligibility criteria are met, and decision of sanctioning authority shall be final and non-questionable.
2. Processing Fees / Charges: As per schedule of charges — published on website / branch notice board, and stated specifically in individual sanction letter. Processing fee is non-refundable, whether loan is availed or not, except in case of rejection at Society's end where it is fully refunded.
3. Disbursal Conditions: Loan disbursed only after: (a) Execution of all legal documents, (b) creation / registration of charge / mortgage / hypothecation, (c) 1st / 2nd disbursement as per stage-wise release for construction / housing / project loans.
4. Repayment — EMI / Other Modes: EMI (Equated Monthly Installment) on fixed due date (1st / 5th / 10th / 15th / 25th of each month as opted or as per sanction letter). Primary repayment mode is NACH / e-NACH / SI (Standing Instruction) on registered bank account. Other modes — UPI, NEFT, cash, cheque, pay at branch.
5. Default / Overdue & Penal Charges: In case of EMI default: (a) Late payment penalty 2% p.m. (24% p.a.) on the overdue amount from due date till date of realization. (b) Bounce charges ₹350 + GST per incidence of cheque / NACH / SI return for financial reasons. (c) Default reported to all four Credit Bureaus (CIBIL/Experian/Equifax/CRIF) after 30+ days overdue, which adversely affects credit score and your ability to get any loan from any institution in future.
6. Foreclosure / Part-Prepayment Charges:
   • Floating rate loans (housing, overdraft, business CC/OD): NIL foreclosure charges (as per RBI directive)
   • Fixed rate loans (Personal, Gold, Vehicle, Consumer): 3-5% of outstanding principal if foreclosed within first 12 months; NIL after 12 months.
   • Part prepayment allowed any number of times subject to minimum 3 EMIs equivalent (or as per sanction letter).
7. Security / Collateral: Depending on product and amount — hypothecation of assets, equitable / registered mortgage of immovable property, pledge of deposits / securities, LIC assignment, corporate / personal guarantees, post-dated cheques. Insurance on mortgaged property / hypothecated vehicle — at borrower's cost, Society's interest clause endorsed.
8. Recovery / Legal Measures: If default persists beyond 90 days, account is classified as NPA (Non Performing Asset) per IRACP norms of RBI. Society may thereafter proceed with recovery measures under applicable law including: (a) SARFAESI Act 2002 (for secured debts above ₹1 Lakh) — possession and sale of secured asset without court intervention, (b) Filing of Recovery Suit before DRT / Civil Court / Co-operative Tribunal, (c) Action under section 138 NI Act for dishonored cheques, (d) Engaging Recovery Agents (RBI empaneled agents bound by Fair Practices Code — no harassment, calls only between 7 AM to 7 PM). All recovery costs (legal, notice, auctioneer, valuer, travel, agents) shall be to the Borrower's account.

5. Loan Against FD / RD

1. Amount: Up to 90% of principal + accrued interest (85% for RDs).
2. Rate: FD / RD contracted rate + 200 bps (2% p.a.). No processing fee.
3. Tenure: Not exceeding remaining tenure of the underlying deposit.
4. If loan remains overdue beyond 30 days after maturity of deposit, Society has absolute right of set-off and appropriate the entire FD/RD proceeds towards outstanding loan dues, without further notice (depositor consents this by signing).

6. Digital Banking Services — Internet, Mobile, UPI, WhatsApp

1. Eligibility & Activation: All members in good standing with registered mobile & email. First time activation via OTP on registered number. Facility may be de-activated temporarily or permanently if suspicious activity detected.
2. User Credentials: You are 100% responsible to maintain confidentiality of User ID, Password, MPIN, TPIN, OTP, Biometric credentials. Society shall not be liable for any unauthorized transactions resulting from your negligence in safeguarding credentials (e.g. password written on paper, shared with someone, phishing victims who shared OTP). In case of loss/theft of device/credentials, you must IMMEDIATELY block digital access via toll-free or nearest branch — any delay beyond reasonable time (max 3 working hours) makes you liable for all losses.
3. Transaction Limits (default, customizable within caps):
   • UPI: ₹1 Lakh per day, per transaction limit ₹1 Lakh
   • IMPS: ₹2 Lakh per day, ₹5 Lakh per month
   • NEFT / RTGS: ₹25 Lakh per day (full KYC)
   • Third-party Fund Transfer: Add-beneficiary cooling period of 30 minutes for first 4 transactions (RBI mandate for fraud prevention).
4. Processing of Digital Transactions: Fund transfer requests received after cut-off time, on non-business days, or during system maintenance shall be processed on next working day. Society not responsible for delay in NEFT/RTGS/UPI due to NPCI / RBI / Beneficiary bank outages.
5. Customer Liability for Unauthorized Electronic Transactions (as per RBI Master Direction Oct 2022):
   • Zero Liability of Customer: Contributory fraud / deficiency on part of the Society, or Customer reports within 3 working days of receiving SMS/alert.
   • Customer Liability between 4–7 working days: Maximum ₹10,000 or actual transaction (whichever lower).
   • Beyond 7 days: Liability determined by Society's Customer Service Committee based on evidence presented.
   Burden of proving customer negligence lies with Society.

7. Schedule of Charges

All fees, charges, penalties, rates, stamp duty, CERSAI, valuation, legal, processing, transaction costs are as per Master Schedule of Charges published on www.microfinance.co.in/schedule-of-charges and displayed at every branch. This schedule is subject to revision with 30 days prior notice to members (except statutory / regulatory charges / taxes which are immediate).

8. Amendments / Modification of Terms & Services

Society reserves the right to add, modify, delete, revise, curtail or discontinue any of its products, services, channels, features, benefits at any time. Changes shall be brought to the notice of members by: (a) prominent display on the homepage of the website for 30 days, (b) branch notice boards, (c) SMS & email for changes materially affecting your costs / rights, (d) updated "Effective Date" on Terms page. Continued usage post effective date constitutes deemed acceptance.

9. Disclaimer & Limitation of Liability

Services & Platforms are provided on an "AS IS" and "AS AVAILABLE" basis without any warranties (express or implied) including merchantability, accuracy, non-infringement, uninterrupted or error-free performance, except those which cannot be excluded by statute (Consumer Protection Act, 2019 as applicable). Society's aggregate liability under any theory (contract, tort, negligence, misrepresentation or otherwise) for any cause whatsoever shall be strictly limited to the lower of — (a) direct loss actually proven or (b) fees / charges paid by you to the Society for the specific service in the previous 12 months or ₹1 Lakh Rupees, whichever is lower. Under no circumstances Society, its directors, officers, employees, agents shall be liable for any indirect, consequential, special, incidental, exemplary, punitive or remote losses (including lost profits, lost data, lost opportunity, lost reputation, business interruption) even if advised of possibility of such losses.

10. Force Majeure & Excusable Delays

Society shall not be liable for any failure or delay in performance of its obligations under this Agreement, to the extent and for so long as such failure or delay is caused by or results from Force Majeure Events as defined. Member shall continue to pay all dues accruing prior to and during Force Majeure period. Society may in its sole discretion offer temporary EMI moratorium / restructuring in genuine hardship cases due to Force Majeure (this is concession not a matter of right).

11. Dispute Resolution — Grievance Redressal & Arbitration

11.1 Internal Grievance Redressal (Mandatory before any legal action)

1. Level 1 — Branch: Any complaint/grievance may be made in writing to Branch Manager / Call Center (Toll Free 1800-123-4567, IVR Option 3) or digitally via App / Portal. Acknowledgment: within 24 hours. Resolution SLA: 7 working days.
2. Level 2 — Regional Nodal Officer: If not satisfied with Level 1, escalate via email to grievance.officer@microfinance.co.in. Resolution within 15 calendar days.
3. Level 3 — Principal Nodal Officer & Customer Service Committee: If still aggrieved, appeal to Principal Nodal Officer at HO. Final internal disposal within 30 days.
4. Level 4 — External Ombudsman (only if all 3 internal levels exhausted): You may approach Office of the RBI Ombudsman for Cooperative Societies (as applicable) / Consumer Disputes Redressal Commission of appropriate jurisdiction, if complaint remains unresolved beyond 30 days or compensation involved.

11.2 Arbitration Clause (Very Important — Please read carefully)

Any dispute, controversy or claim of whatever nature (except disputes which are statutorily required to be adjudicated before Cooperative Tribunal / Consumer Courts, which are not barred hereby) arising out of or in connection with this Agreement, including its existence, validity, interpretation, breach, performance or termination shall be finally settled by sole Arbitration under the Arbitration and Conciliation Act, 1996, by a sole arbitrator mutually appointed within 30 days, failing which appointed by Hon'ble Bombay High Court. Seat of Arbitration: Pune, Maharashtra, India. Language: English. Arbitration award shall be final and binding on both parties and enforceable in courts of law. Courts of Pune, Maharashtra shall have exclusive jurisdiction over any court proceedings related to this arbitration (challenge to award, enforcement etc.)

12. Notices & Communications

Any notice / statement / intimation / summon may be sent by the Society to Member at registered address / email / mobile / WhatsApp — by ordinary post, registered post, courier, email, SMS, push notification. Deemed delivered: (a) SMS / push / email — at time of transmission (even if bounces — it is your responsibility to keep details updated), (b) post — 3 days from posting for Indian addresses.

13. Severability

If any clause / provision of these Terms is held by a competent court or tribunal to be invalid, illegal, void ab initio, unenforceable or against public policy, such decision shall not affect the validity or enforceability of the remaining provisions which shall continue in full force and effect, as if the offending provision had never been included herein.

14. Waiver

No delay, omission or forbearance by Society in exercising or enforcing any of its rights, powers or remedies under these Terms (including but not limited to right to recall loan, initiate recovery proceedings, charge penalty) on one or more occasions shall constitute a Waiver of such right or of any other right; nor shall it preclude Society from exercising such right in future. All rights and remedies are cumulative and not alternative or exclusive.

15. Survival

Clauses on limitation of liability, disclaimers, confidentiality, indemnity, arbitration, jurisdiction, set-off, repayment/liability of outstanding dues, intellectual property, data protection obligations (to the extent required by law), shall survive termination / closure of accounts / resignation / expulsion / dissolution for the maximum period permitted by law.

16. Intellectual Property Rights

All content appearing on the website / mobile app including but not limited to text, graphics, UI/UX, logos ("MicroFinance™", logo, tagline), source code, API specifications, calculator algorithms, training material, brochures, are the exclusive intellectual property of MicroFinance Cooperative Society Ltd. or its licensors and are protected under the Copyright Act, 1957, Trade Marks Act 1999 and Patents Act 1970. No reproduction, scraping, mirroring, AI-training ingestion, framing or deep-linking without prior written permission.

17. Fair Practices Code

Society abides by RBI prescribed Fair Practices Code (FPC) for lenders. Complete FPC document is available at www.microfinance.co.in/fair-practices-code and every branch. Highlights: (a) Transparent communication of all terms before sanction. (b) No hidden charges. (c) Reasonable notice before recall / enforcement of securities. (d) No harassment in recovery — no intimidation, humiliation, public naming, calls beyond 7 AM — 7 PM.

18. Contact For Legal Queries