“As far as the cooperative banking sector is concerned, no major relief has been given to this sector but the overall Union Budget presented by Union Finance Minister Nirmala Sitharaman is good especially the announcement made for connecting the Post Offices in India to the Core banking system”, said Vidyadhar Anaskar, Chairman, Maharashtra Urban Cooperative Bank Federation.
The reduction in Alternate Minimum Tax and surcharge on cooperative societies will benefit but we are yet to know whether these Urban Cooperative Banks are covered or not.
We were expecting a big relief for the cooperative sector as the Central Government had made Union Home Minister Amit Shah the Cooperation Minister. Government should announce a special fund for Strengthening the PACs.
Besides NABARD to facilitate funds with blended capital to finance startups for agriculture & rural enterprise, there may be an opportunity for State Cooperative Banks, DCCBs, and PACs, he added.