The co-op sector has reacted favorably to the Union Budget 2020 presented by the Finance Minister on Saturday, calling it a game changer. The decision to effect parity between Corporate and cooperative has been welcomed by all. Also the idea of allowing the banking sector to raise capital has widely been lauded. We reproduce some of the reactions verbatim.
Cosmos Bank Chairman Milind Kale said, ” As cooperator yes the budget has met the expectations besides tax parity it has even included dividend distribution tax removal”.
Visakhapatnam Urban Cooperative Bank Chairman Raghavendra Rao said, ” With regard to the income tax on cooperatives at last the government recognized their mistakes and reduced the tax on cooperatives. But there is no clarity of tax rates for cooperatives for the current fiscal. There are discussions that risk based premium will be collected from banks for their deposits insurance. if it’s the case it’s against the interest of cooperative banks.
NKGSB Cooperative Bank, MD, Chintamani Nadkarni said, “In the union budget no doubt the government has given relief to the cooperative sector but due to less margin, our profitability is limited. We welcome the move of increasing the deposit cover insurance from Rs 1 lakh to Rs 5 lakh but there is no clarity on premium.
CA Chandrakant Chougule, Vice-Chairman, Kaijs Bank informed, “The overall union budget is good and the government is willing to strengthen the cooperative movement of the country. Decreasing the rate of Income Tax for the cooperatives will benefit them a lot. Besides, the wrong perception about the cooperatives in the mind of public will also go away.
Pune People’s Cooperative Bank Director and Pune UCB Association Chairman Subhash V Mohite said, ” The finance Minister has raised the deposit insurance limit from 1 Lac to 5 Lac fulfilling a long standing demand of the sector . It will create the confidence in the depositors. The benefit of reduction in income tax up to 22 will also benefit to some extent. Proposed amendments in the SARFAESI Act also deserve to be welcomed. But while carrying out amendments, consultations with actual bankers must be held”.
Nashik Urban Bank Association President CA Ajay Barmeccha said, “For cooperative banks Deposit insurance cover raised to 5 lakhs & Income Tax reduced to 22 percent with no other exemptions are good move. But we have to check out details for premium to be pay for insured amount”.
Chikhli Urban Cooperative Bank Chairman Satish Gupta said, Union Budget presented by Union Finance Minister Nirmala Sitharaman is overall good, especially since the government has considered our demands and gave rebates to cooperatives on Income Tax at par with the corporate sector. This is justice done for the cooperative sector.
Kangra Cooperative Bank CEO Jagmohan Taneja said, “We welcome the move of government to give rebate to cooperative sector. We are happy and thankful to Union Finance Minister Nirmala Sitharaman for encouraging cooperatives.
Delhi based Janata Sahakari Bank CEO P S Pathania said, ” It is a good budget for the cooperative societies/banks as income tax reduced 22% from 30% and deposit insurance coverage increased to Rs.5 lakh from existing Rs 1 lakh”.
Venkatesh Multi-state Credit Cooperative Society, Chairman, Abhinath Shinde said, “We are very much satisfied with this budget as this budget has revised income tax on co-operatives to 22 % from the existing 33 %. Private organizations paid 22 % & we had to pay 33 % , which was unfair. One more positive thing is effecting an increase in deposit insurance cover which will lead to the common public trusting banks.
Indraprastha Sehkari Bank, CEO, Rajeev Gupta said, “The government has fulfilled the demand of cooperatives and met our expectations. This budget will boost the business sector. We welcome the move of the government.
Jijau Commercial Cooperative Bank, Chairman Er Avinash Kothale said, the budget is good for cooperative bank. Deposits in co-operative Banks up-to 5lacs is welcoming move! Deposits in long term period needs Income Tax concessions in 80p up to 1.5lacs This is untouched. Co-operative banks needs full tax rebate of 80P as they are cooperative.
Godavari Urban Cooperative Bank Chairperson, Amruta Vasantra Pawar said, “Good for cooperative sector. But nothing for Farmers, Last budget had roads & transport budget but now road contractors are not getting paid. Biggest yojana Ayushman Bharat declared by PM last year no consideration for this yojana in this budget. Overall not good”, she added.
Gnana Shale Souharda Credit Cooperative, Chairman, Sridhar N Rao said, Cooperatives got the big relief in the context of Income Tax and we thank Union Finance Minister Nirmala Sitharaman for addressing the concerns of the cooperative sector seriously. We also endorse Minister’s resolve to amend the banking regulation act.
Deendayal Nagari Sahakari Bank, CEO, Banwaskar said, “The presented union budget will strengthen the agriculture sector and will boost the business sector. We convey thanks to Nirmala Sitharaman for reducing the tax rate for cooperatives and increasing the deposit insurance cover to Rs 5 lakh.
Manavi Urban Cooperative Bank Chairman Thimmaiah Shetty said, ” We are happy to welcome the budget. Smt Nirmal Sitharaman has accepted our grievances and solved major problems. Hope, RBI would also consider withdrawing BOM and giving a relief to the sector ”
Udaipur based Mahila Samridhi Sahakari Bank CEO Vinod Chaplot said, ” It’s superb. First time the voice of Cooperatives has been heard. Tax reduction to 22%, deposit insurance increased by Rs 5 lakh and a mechanism introduced to raise capital. Literally cooperatives are now having some kind of oxygen to survive.
Indore Parspar Urban Cooperative Bank Director Sekhar Kibe said, “It is for the first time that the FM looked positive towards the coop sector viz. Support to women SHG under Dhanya Laxmi scheme, 15 lac crore for refinancing through NABARD, enhancement of DICGC claim up to 5 lacks which generate more confidence among depositors specially of the coop sector, Now Income tax applicable to the coop sector is 22 %.”.
Industrial Cooperative Bank, CEO, Subhra Jyoti Bharali informed, ” It is fifty fifty. Tax reduction for coop and coverage of insurance up to 5L for depositors are good steps”.
Nafcub Director and Laxmi Bai Mahila Nagarik Coop Bank Chairman Alka Srivastava said, Congratulations! The income tax rates on co-operative societies have been reduced from 33 percent to 22 percent on a par with limited companies. This will give relief to banks and banks will get more capital to work”.