Co-operative banks can’t take deposits under PMGKY


New Delhi: A move aimed at curbing any misuse, the government has barred co-operative banks from accepting deposits under the Pradhan Mantri Garib Kalyan Deposit Scheme (PMGKDS).

The move comes after various government agencies unearthed irregularities in several cooperative banks across the country. Investigations by the income tax department revealed that a large number of cooperative banks were manipulating and laundering unaccounted money post demonetization.

The government had unveiled the PMGKY to offer a “last“opportunity to holders of unaccounted for wealth to come clean. The scheme will be available up to March 31.

In a release, the government has said, “application for the deposit in the form of Bonds Ledger account shall be received by any banking company, other than co-operative Banks, to which the Banking Regulation Act, 1949 applies.”

The government amended its earlier notification to make it clear that cooperative banks were not allowed to accept deposits under PMGKDS. The government had notified PMGKDS in December. Deposits under this scheme can be made by any person who declares undisclosed income under Pradhan Mantri Garib Kalyan Yojana (PMGKY).

A surcharge to be called ‘Pradhan Mantri Garib Kalyan cess’ at the rate of 33% of tax will also be levied. In addition to tax, surcharge and penalty (totalling approximately 50%), a declarant will have to deposit 25% of undisclosed income in the PMGKDS.

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