The Reserve Bank's credit insurance arm has paid over Rs 142 crore to depositors of 19 cooperative banks that have gone bankrupt in 2008-09.During 2007-08, as many as 22 cooperative banks closed operations.
The Deposit Insurance and Credit Guarantee Corporation (DICGC), a wholly-owned subsidiary of the RBI, pays a maximum of Rs 1 lakh per depositor in case a bank goes insolvent.
The following is the list of 19 co-operative banks that went bust and claims on which were settled by Deposit Insurance and Credit Guarantee Corporation Claims during 2008-09:
Among the 19 failed cooperative banks, the highest amount of Rs45.41 crore was paid to depositors of Co-operative Bank Ltd, Gonda, UP; followed by The Maratha Co-operative Bank Ltd, Hubli, Karnataka (Rs17.75 crore); Parivartan Co-operative Bank Ltd, Mumbai, Maharashtra (Rs16.71 crore); Ravi Co-op Bank Ltd, Kolhapur, Maharashtra (Rs16.23 crore) and Indira Priyadarshini Mahila Nagarik Sahakari Bank Ltd, Raipur, Chhattisgarh (Rs13.17 crore).
The following is the list of co-operative banks that went burst and claims on which were settled by Deposit Insurance and Credit Guarantee Corporation claims during 2008-09:
Wednesday, July 22, 2009
19 cooperative banks in India go insolvent during 2008-09
Tuesday, July 21, 2009
Cooperative banks seek tax exemption
New Delhi, July 15 (PTI) A body of urban cooperative banks has appealed to Finance Minister Pranab Mukherjee to restore the income tax exemption they enjoyed till 2006. A delegation of Bangalore-based Forum of Urban Cooperative Banks, led by CPI(M) leader Basudeb Acharia, met Mukherjee and urged him to restore the concession under Section 80P of the Income Tax and withdraw the 30 per cent tax on their profits.
The delegation pointed out that several committees of the government and the RBI were of the opinion that cooperative banks need government''s helping hand and encouragement. Even the RBI, the Forum''s memorandum with 10,100 signatures claimed, had recently recommended that the decision of withdrawal of exemption be kept in abeyance.
It also said that while cooperative banks world over are exempted from paying tax, in India they faced discrimination as they are not not extended the facility of treatment of five-year deposits of commercial banks as savings. The delegation comprised Umapathy, N Premkumar, Chandrashekar, Badrinath, H K Srinivas, P T Satyanarayana and C V Kumar, Convenor of the Forum.
PTI.
(courtesy : yahoo news)
Urban co-operative banks ask for tax exemptions
| |
For the purpose, the representation was made to the finance ministry by an 8-member delegation of NAFCUB headed by Rahman Khan, deputy chairman of Rajya Sabha. Such an exemption in the income tax to urban cooperative banks and credit societies was allowed by the government till 2006. NAFCUB has also asked the government to include deposits with non-scheduled co-operative banks for eligibility under section 80 (C) of the income tax act.
KD Vora, member, executive committee, NAFCUB said, “Our body’s assessment is that the proposed income tax relief is expected to enhance the CRAR of each urban cooperative bank in the country by around 4%. It will also help the banks to consolidate among themselves and penetrate the rural parts of the country.” He said that at present, 18 countries including the US offer such a tax rebate facility to the urban cooperative banks.
The income tax paid for last fiscal by 1,780 urban cooperative banks and credit societies, mainly spread across Maharashtra, Andhra Pradesh, Gujarat, Karnataka and Tamil Nadu, was around Rs 1,000 crore.
courtesy : The financial express Updated: Jul 04, 2009 at 0112 hrs IST