Budget: NAFCUB President hails 43D amendment

Nafcub President Jyotindra Mehta has expressed happiness over amendment in the Section 43D of the Act which would ensure non-scheduled banks are treated on a par with scheduled banks thereby bringing a huge relief to the urban cooperative banking sector.

According to this Act, there was relief on the interest of NPAs to only PSUs, NBFCs and scheduled banks earlier. Urban cooperative banks which largely fall in the non-scheduled category were kept away from this benefit. This budget has brought them on a par with the rest.

“It’s a major relief when I tell you that out of 1085 urban cooperative banks that are there are, only 57 are scheduled ones”, said Mehta on the phone to Indian Cooperative

Mehta also credited Amit Shah for this. “Nafcub has been raising the issue for long but it was finally a crucial meeting with Amit Shah when we could convince him of injustice being meted out to urban cooperative bank sector; he assured us that it would be addressed and we are happy that he has kept his words”, said a relieved Nafcub President.

He also congratulated the Union Finance Minister for beginning many firsts this time. “Introducing the budget on 1st of February would ensure schemes are implemented as they have enough time now. It was for the first time the budget reflected concern for the honest tax-payers. It was also for the first time that political parties were asked to have more discipline while accepting donations”, Mehta who is also the Chief of Sahakar Bharati went on.

On the issue of amendment of the MSCS Act Mehta said details are yet to come and it is too early to formulate a response.

Another senior leader from the urban cooperative banking sector Mukund Abhyankar was however not happy with the Budget. He said “ There is absolutely nothing for the co-operative sector as such. The announcement of amendments in the Multistate Cooperative Societies Act and the Sarfacie Act are without any details.

Abhyankar also said ” absolutely no mention of Banking Transaction Tax has saved reduction in banking transactions and reversal from cashless transactions is saved.”

No increase in Corporate Tax might give boost to sluggish demand of loans. So banks expect a pickup in loan portfolios and little increase in profits, Abhyankar added.

G Krishna –an old hand at NAFCUB however said “amended 43D will bring non scheduled UCBs on a par with scheduled banks. This was repeatedly being asked by NAFCUB.”

“ However FM stating that the MSCS Act will be amended along with passing of the Banning bill will be disastrous for multi state credit societies”, Krishna added.