Centre stops cooperative banks from receiving deposits under PMGKY scheme

Announcing yet another banking restriction in tune with demonetisation, the centre has barred cooperative banks from accepting deposits under Pradhan Mantri Garib Kalyan Yojana (PMGKY) scheme.

The notification has come after the Income Tax department noticed irregularities in deposits of cooperative banks after the demonetisation step of the government since November 8.

Prime Minister Narendra Modi led government ,post demonetisation, had announced an amnesty scheme for those having unaccounted cash by asking them to pay 50 percent tax and transferring one-fourth of it in a no-interest bearing four-year deposit.

Prior to this latest restriction, deposits could be made with any banks. However with this latest notification, cooperative banks have been barred from accepting such deposits, reports the Indian Express.

The scheme is active till March 31 this year.

In its notification government has announced that, “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.”

As per the scheme, holders of unaccounted cash who are willing to avail the offer will have to first pay the tax amount and then fill up a form provided by the bank for the deposit scheme. The banks, which have been authorized to accept the payments under PMGKY, have to submit electronically the details of deposit to the Revenue Department on the next working day to allow information verification of the deposit before accepting the declaration under scheme.

The Reserve Bank of India (RBI) and other authorised banks will ensure full confidentiality of the data.


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