Under Section 3 of the Banking Regulation Act, 1949, the Act shall not apply to a primary agricultural credit society or to a co-operative society whose primary object and principal business is providing long-term finance for agricultural development, subject to conditions. Which of the following conditions must be fulfilled for this exclusion to operate?

Section 3, as substituted by the Banking Regulation (Amendment) Act, 2020 (Act 39 of 2020) with effect from 26 June 2020, provides that the Act shall not apply to a primary agricultural credit society or to a co-operative society whose primary object and principal business is providing long-term finance for agricultural development, if such society does not use the words “bank”, “banker” or “banking” as part of its name or in connection with its business, and does not act as drawee of cheques. Both conditions must be satisfied cumulatively. If either condition fails — for instance, the society acts as drawee of cheques even without using the word “bank” — the exclusion ceases to apply and the Act governs the society.