Reserve Bank of India
07:49
Showing posts with label Cooperative Banks. Show all posts
Showing posts with label Cooperative Banks. Show all posts
Saturday, 31 March 2018
Thursday, 2 February 2017
ministry of Finance
08:01
Extension of scope of section 43D to Co-operative Banks
Extension of scope of section 43D to Co-operative Banks
The existing provisions of section 43D of the Act, inter-alia, provides that interest income in relation to certain categories of bad or doubtful debts received by certain institutions or banks or corporations or companies, shall be chargeable to tax in the previous year in which it is credited to its profit and loss account for that year or actually received, whichever is earlier. This provision is an exception to the accrual system of accounting which is regularly followed by such assessees for computation of total income.
The benefit of this provision is presently available to scheduled banks, public financial institutions, State financial corporations, State industrial investment corporations and certain public companies like Housing Finance companies. With a view to provide a level playing field to co-operative banks vis-Ã -vis scheduled banks and to rationalise the scope of the section 43D,it is proposed to amend section 43D of the Act so as to include co-operative banks other than a primary agricultural credit societyor a primary co-operative agricultural and rural development bank.
Consequentially, as per matching principle in taxation, if the interest income on bad or doubtful debts is chargeable to tax on receipt basis, the interest payable on such bad or doubtful debts need to be allowed on actual payment. In view of this, it is proposed to amend section 43B of the Act to provide that any sum payable by the assessee as interest on any loan or advances from a co-operative bank other than a primary agricultural credit society or a primary co-operative agricultural and rural development bank shall be allowed as deduction if it is actually paid on or before the due date of furnishing the return of income of the relevant previous year.
These amendments will take effect from 1st April, 2018 and will, accordingly, apply in relation to the assessment year 2018-19 and subsequent years.
Source:indian Budget 2017
Friday, 20 January 2017
Reserve Bank of India
18:45
Government bars cooperative banks from accepting deposits under PMGKY
Government bars cooperative banks from accepting deposits under PMGKY
The government has barred cooperative banks from accepting deposits under the new tax amnesty scheme PMGKY, a move that comes amidst the Income Tax department uncovering anomalies post demonetisation. After junking old 500 and 1,000 rupee notes, the Centre had come up with an amnesty scheme for holders of unaccounted cash by asking them to pay 50 per cent tax and parking one-fourth of it in a no-interest bearing four-year deposit.
This deposit could be made with any banks. But now cooperative banks have been barred from accepting such deposits. The PMGKY scheme is open till March 31. “Application for the deposit in the form of Bonds Ledger Account shall be received by any banking company, other than Co-operative Banks, to which the Banking Regulation Act, 1949, applies,” the government said while amending the notification for Pradhan Mantri Garib Kalyan Yojana (PMGKY), 2016.
Under the scheme, holders of unaccounted cash willing to avail the offer will have to first pay the tax amount and then fill up a challan form provided by the bank for availing the four-year deposit scheme. The authorised banks have to electronically furnish the details of deposit to the Revenue Department on the next working day to enable information verification of the deposit before accepting the declaration under the PMGKY.
Full confidentiality of the data would be ensured by the RBI and authorised banks. The amendment to the notification comes after the I-T department spotted irregularities in deposits of cooperative banks following demonetisation. The the I-T department’s investigation revealed that deposits in the books of certain cooperative banks were in excess of the physical holding of the now-defunct 500 and Rs 1,000 rupees currency notes.
Initially cooperative banks were allowed to take deposits of old currency notes and as per estimates, about Rs 16,000 crore was deposited. But six days into demonetisation, the RBI barred these banks from exchanging old currency notes or accepting deposits.
Source:Businessfortnight
Thursday, 29 December 2016
VRS
18:44
CARD Bank employees threaten self-immolation
CARD Bank employees threaten self-immolation
BHUBANESWAR: Employees of Cooperative Agricultural and Rural Development (CARD) Bank, who are struggling without salary or service allowances for the last five years, have threatened self-immolation at the State Capital on January 17.
The employees, under the banner of All Odisha Card Bank Employees’ Union, have put forth their demands of merger of the bank with Odisha State Cooperative Bank and implementation of mass VRS scheme. Senior officials of the Cooperation Department had promised to consider the demands of merger and VRS scheme during a meeting on November 26.
‘’We also met Cooperation Minister Damodar Rout and pleaded to bail out 75 employees of 45 CARD Banks in the State from financial distress,’’ general secretary of the association Mohan Gopal Panda said.
Implementing the VRS scheme would incur a loss of `15 crore on the Government which can be sourced from `25 crore which is a surplus from ADWDR 2008 funds, he added.
The State Government may also liquidate 22 buildings and around 100 acres of cultivable land under the ownership of the CARD Bank to facilitate the VRS scheme, sources said.
“The Government has been indifferent to our demands. The association will sit on a hunger strike in front of the Registrar of Cooperative Societies from December 9 to 16. If our demands are still not met, the employees will immolate themselves,’’ a member of the association, who is suffering from renal failure, warned.
Source:New Indian Express
Monday, 19 December 2016
Reserve Bank of India
07:18
Reserve Bank Of India:Cannot provide DCCBs facility of exchanging old notes
Reserve Bank Of India:Cannot provide DCCBs facility of exchanging old notes
The Reserve Bank of India (RBI) has made it clear that it cannot provide to district cooperative central banks (DCCBs) the facility of exchanging old demonetised notes or depositing the old notes with them because the level of automation in them is low and their staff too were not equipped enough to detect fake currency notes.
RBI's assistant general manager Manabhanjan Misra told this to the Hyderabad High Court which was hearing petitions by farmers Boda Mangaiah and seven others who were seeking such a facility to DCCBs in order to enable them to get their Rabi loans by repaying their existing loans with old cash in the cooperative banks which are closer to them.
The bench of Acting Chief Justice Ramesh Ranganathan and Justice A Shankar Narayana earlier felt that farmers should be provided with some relief as crippling their farm activities would be detrimental to the interests of the nation and sought the response of the RBI on this particular aspect, whether or not it would allow the farmers to repay their loans with old cash.
Source:Banking Update
Thursday, 15 September 2016
Sunday, 30 August 2015
Saturday Leave
11:16
No payment systems to work on 2nd, 4th Saturdays from Sept 1: RBI
No payment systems to work on 2nd, 4th Saturdays from Sept 1: RBI
With effect from Thursday, payment systems would not work on the second and fourth Saturdays of a month, but would operate the full day on working Saturdays, the Reserve Bank of India (RBI) said.
The payment systems that would not work include Real Time Gross Settlement (RTGS), National Electronic Fund Transfer and Electronic Clearing Service (ECS).
This is because all scheduled and non-scheduled banks, public, private, foreign, cooperative, regional rural and local area banks, will have a holiday on the second and fourth Saturdays from September.
The other payment systems that would not work on these days include cheque clearing including the grid-based Cheque Truncation System, Regional Electronic Clearing Service and National Electronic Clearing Service.
RBI said the processing of future value dated transactions with a value date falling on the second and fourth Saturdays will not be undertaken under RTGS and ECS.
Following a pact between public sector bank employees and officers with the management, it was decided that all branches in the country would remain closed on all the second and fourth Saturdays from July. Subsequently, the government issued a notification enabling the same for all banks. RBI has clarified it will continue to operate fixed rate reverse repos as well as the marginal standing facility windows on all working Saturdays. It will also operate a fixed rate liquidity adjustment facility repo window on all working Saturdays.
The central bank also said that as a regulator of banks, financial markets and payment and settlement systems, it had made supporting changes in the working of some of its operational areas. The arrangements would be reviewed after six months.
