AJ

L to R – Shri D Krishna, Shri Jyotindra Mehta, Shri Vidyadhar Vaishampayan, Shri Satish Utekar

Sahakar Bharati Delegation led by Shri Satish Marathe, National President and comprising of Shri Jyotindra Mehta, Chairman, Gujarat Urban Banks Federation, Vice President, Sahakar Bharati, Shri Vidyadhar Vaishampayan, Director, NAFCUB, Co Convener, UCB Cell, Sahakar Bharati, Shri Satish Utekar, Alternate Chairman, UCB Committee, Indian Banks’ Association, Shri D Krishna, Ex-CEO, NAFCUB, Shri Lakshmi Narayan Gupta, President, Sahakar Bharati,Delhi called on Hon Shri Arun Jaitley, Finance Minister, GOI at his North Block Office on Tuesday, 7th April, 2015 and made a detailed Presentation mainly on the following issues confronting the Urban Co Op Banks (UCBs).

Main Issues:

1. Co Operatives by their very definition are Mutual Societies and are worldwide subject to Tax Laws. As per World Organisation of Co Op Credit Union (WOCCU), 67% countries in Asia, 62% in Africa, 81% in Latin America, 94% in Caribbean and 38% in Europe do not tax Co Operatives. Therefore, a fervent request was made to withdraw the Income Tax on the UCBs.
2. Deductions u/s 36 (i) (vii) and 43 (D) be allowed to all UCBs.
3. All demands, notices, etc made/issued by the Income Tax Department in respect of TDS for the past periods be withdrawn and from 2015-16, the limit for deduction of TDS be raised from Rs 10000/- to Rs 50000/-.
4. As a part of Public Policy, the Govt of India and the RBI should immediately start licensing of new UCBs in the background of healthy performance of the UCBs Sector (A & B rated 1075 UCBs account for 85% of the Business).
It was also brought to the notice of the Hon FM that there are small and big countries whose population is much smaller than that of India yet have large number of UCBs vis a vis their popoulation/size eg. Austria – 570, Finalnd – 220, France – 2500, Australia – 135, US – 8400. It was also stated that the contention of RBI is not tenable as India has only about 1600 UCBs.
5. As regards Raising of Capital for UCBs, it was suggested that the UCBs be allowed to Issue Rated Irredeemable Bonds and that the same be listed on a specially formed Exchange and that the GOI may constitute a Committee comprising of Representatives of the Govt of India, RBI, and the Co Op Sector to work out the modalities/details.
6. All UCBs be recognised as Banking Organisations under SARFAESI Act.
7. UCBs be included as Eligible Lending Institutions under Credit Guarantee Fund Scheme.
8. RBI should issue guidelines for determining exclusive exposure limit for Housing Loans, independent of Commercial Real Estate.
9. UCBs be permitted to open Sukanya Samridhi Account.
10. Nationalised Banks should fully involve core banking compliant UCBs in opening accounts under Pradhan Mantri Jan Dhan Yojana.