A delegation led by Rajya Sabha MP Dhananjay Mahadik and Maharashtra State Cooperative Credit Union Federation President Omprakash Dadappa and Kaka Koyte met Union Minister of State for Finance Pankaj Chaudhary in Delhi at his residence on Wednesday to discuss critical issues concerning cooperative credit societies.
During the meeting, State Federation President Kaka Koyte provided detailed insights into the operations and impact of cooperative credit institutions in Maharashtra. Key concerns regarding the tax system and regulatory framework for these institutions were also highlighted.
One of the primary demands of cooperative credit societies is complete income tax exemption under Section 80P of the Income Tax Act. This exemption would provide much-needed financial relief to these institutions, allowing them to better serve rural and semi-urban communities without the burden of taxation.
Additionally, cooperative credit societies are seeking exemption from TDS on interest earned on deposits. Currently, the deduction of TDS affects their financial resources, and removing this requirement would enhance their liquidity and operational efficiency.
Another crucial demand is the inclusion of cooperative credit societies in payment gateways, enabling seamless digital transactions. This integration would modernize their financial services, making transactions easier for customers and ensuring better financial inclusion.
Cooperative credit societies are also advocating for exemption from Sections 269S and 269ST of the Income Tax Act. These provisions impose restrictions on cash transactions, which can hinder the smooth functioning of societies, especially in rural areas where digital banking penetration is still limited.
Finally, cooperative credit societies are requesting that their deposits be provided with insurance cover, similar to banks. This would enhance depositor confidence and ensure financial security, aligning cooperative credit institutions with the mainstream banking sector.
The Minister of State for Finance assured the delegation that a joint meeting would be arranged with Union Minister of Cooperation Amit Shah and Union Minister of State for Cooperation Muralidhar Mohol to address and resolve these issues.
On this occasion, Maharashtra State Cooperative Credit Union Federation Vice President Dr. Shantilal Shingi, General Secretary Shashikant Rajoba, Directors Jawahar Chhabra, Dattatraya Khemner, and other officials were also present.
A formal statement of demands was submitted, emphasizing the importance of cooperative credit societies in rural financial inclusion. These institutions have played a crucial role in encouraging savings and providing financial access to common citizens, especially in rural areas.
The delegation expressed confidence that the Central Government will take positive steps to support the growth and sustainability of cooperative credit societies.
