Cessation of Membership 
The membership of a society shall cease:

(a) on cancellation of its registration by the Registrar of Cooperative Societies or winding up of the society;

(b) on a member society deciding to withdraw from the membership of the Federation provided that such a decision is taken by a competent body of the society and is duly communicated to the Federation. The withdrawal in such cases shall take effect after three months from the date of receipt of such a resolution by the Federation subject to the payment of arrears, if any;

(c) on expulsion of the members and on incurring disqualifications as provided in the Act and the rules.

Termination of Membership
For reasons to be recorded in writing, the membership in the Federation may be terminated by a resolution of the general body passed by two-third majority present and voting, if:

(i) Activities of the member society are in conflict or competitive with the activities of NAFCUB, or

(ii) member society fails to represent in three consecutive meetings of the General Body and such absence has not been condoned by the majority of the members present and voting,

(iii) member society is in default of any payments to NAFCUB and such payments have been due and payable for a period of more than two years.

Provided that concerned member society shall be given an opportunity of making a representation in the matter before removal from membership.

Rights of a Member
Every member of the Federation, if otherwise eligible shall have the following rights as per bye-laws of the Federation:

(a) right to vote;

(b) right to receive notice and attend general body meetings;

(c) right to attend and take active part in proceedings of the committees of which he/she may be a member; and

(d) right to take part in elections and contest for any post as per provisions of the Act, Rules and bye-laws of the Federation.

Liquidation and Liability
(a) The liability of the members shall be limited to the amount of subscription payable by them on the date of liquidation.

(b) If there is any surplus, the same shall either be distributed amongst the members of the Federation in proportion of the annual subscription / contribution payable by members at the time of liquidation or be transferred to a new body of the members as may be mutually agreed upon at the time of liquidation.