In a letter written to the Chairmen and Managing Directors of more than 1500 urban cooperative banks spread across the country, Nafub President Jyotindra Mehta has asked them to give donations in the above up to 2% of their net profit.
In Mehta’s words “NAFCUB would request all the urban cooperative banks in the Country to give donations in the above up to 2% of its net profit of the previous year, on or before 31st March 2020.”
Nafcub President has also simultaneously demanded extension of time limit u/s 80G to 30th June 2020 for donations made to fight Corona scare by writing letter to the Finance Minister as well as to the Union Home Minister.
Mehta has also given bank details of the PM Care Fund and has asked UCB to donate directly and send the receipts to in order for it to proudly announce that the UCB sector has played its part in these difficult times.
“The global pandemic in the form of Corona virus is having devastating effect on all countries of the World. Even the world’s most developed and resource- rich countries are reeling under its impact. In India we are bracing ourselves for the crisis and the Government is taking all measures to minimize the impact of the virus. The resources at the disposal of the government are inadequate to meet the medical and economic challenges that lie ahead of the Country”, Mehta writes.
In these trying times, it also becomes a duty of all of us to augment the resources of the government by contributing whatever is our mite, he added.
“Although there is already the Prime Minister’s Relief Fund where people can make donations, the union government has decided to set up a specific fund for Covid-19, due to the gravity of the situation posed by it”, he informed.
The Nafcub President also says that UCBs have two chances for giving donations, one for the current financial year (2019-20) and another from the next financial year (2020-21). For the current year UCBs have only two days left, and we therefore request all UCBs to send their donations on 31 March 2020.
RBI permits such contribution to the PM relief funds up to 2 per cent of net profits, i.e.one per cent in addition to the regular limit of 1 per cent permissible, Mehta clarifies.
“We also understand that a large number of the banks staff members are eager to donate a minimum of one day’s salary towards the PMCARES Fund. We request all the urban banks to ensure that the spirit of participation of their staff in this noble cause may be recognized by arranging for collecting the voluntary contribution and for remitting the same to the PM CARES Fund. a/c, he underlined.
All banks are also requested to kindly forward the details of remittance made by them to the PMCARES Fund, to NAFCUB in order for us to proudly announce the UCB sector’s contributions, Jyotindra Mehta concludes.
