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Relief sought for cooperative banks

Special Correspondent

Centre urged to exempt all banks in the cooperative sector from income tax

JAIPUR: Rajasthan Cooperative Minister Nathu Singh Gujjar on Sunday called upon the Centre to exempt all banks in the cooperative sector from income tax, saying they were working against odds in the priority sector.

Addressing a function of the Rajasthan Urban Cooperative Bank Federation here, Mr. Gujjar said these banks should also improve their services as well as financial management and evolve credibility among people to compete with the private banks.

Mr. Gujjar pointed out that the Jaipur resolution adopted at a conference of Cooperative Ministers here in April this year had demanded exemption from income tax in view of challenges faced by cooperative banks in the implementation of their autonomy.

The Minister said the cooperative banks should introduce facilities such as core banking, ATM machines and short message service for balance enquiries and adopt the changes taking place in the banking sector.

Urban Cooperative Bank Federation vice-president Murlidhar Pandey said the cooperative banks should be provided exemption under Section 80-P of the Income Tax Act and given the right to select an auditor from the panel of the Cooperative Department.

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