Indian cooperative credit society is safe or not

This is a classic example of bail-in before a bail-out. Typically though bail-in refers to bondholders forfeiting part of their investment in a bank before taxpayers are called upon to bail it out. In this case, the depositors are being made to sacrifice to save the bank and the rescuer, Canara Bank, will not have to bear any loss. Many Indian cooperative banks have gone bust in the past and many more will probably go bust in future but this is the first instance where the banking regulator has forced the depositors to make a sacrifice. Protecting depositors has all along been the unstated policy in a nation where about two-third of the adult population does not have access to formal banking services. Will this be the norm for all future mergers of cooperative banks? Before we look for an answer, let’s trace Amanath Co-operative Bank’s history first. ₹ 300 crore. Both the state government as well as the banking regulator had swung into action and by October 2013 it was decided that Amanath Bank Co-operative Bank would be merged with Canara Bank. The merger proposal was discussed at a special meeting of the Amanath board and the high court was informed of the decision accordingly. However, former Union minister ₹ 300 crore scam. Upset with the haircut proposal, the depositors’ association too filed a petition. The cooperative banking industry, which has gone through a lot of turmoil, is a cesspool of politics. The cooperative movement in India started with the enactment of ...

Mumbai: September 24, 2019. Anxious depositors dealing with bank employees at Akruli branch of Punjab & Maharshtra Co-Operative Bank to withdraw money in Mumbai on Monday. The Reserve Bank of India has placed Mumbai-based Punjab and Maharashtra Cooperative Bank (PMC Bank) under directions for six months from the close of business of the bank on September 23, 2019. The depositors will be allowed to withdraw a sum not exceeding ₹1,000 of the total balance in every savings bank account or current account or any other deposit account by whatever name called, subject to conditions stipulated in the RBI Directions. Photo: Arunangsu Roy Chowdhury Mumbai: September 24, 2019. Anxious depositors dealing with bank employees at Akruli branch of Punjab & Maharshtra Co-Operative Bank to withdraw money in Mumbai on Monday. The Reserve Bank of India has placed Mumbai-based Punjab and Maharashtra Cooperative Bank (PMC Bank) under directions for six months from the close of business of the bank on September 23, 2019. The depositors will be allowed to withdraw a sum not exceeding ₹1,000 of the total balance in every savings bank account or current account or any other deposit account by whatever name called, subject to conditions stipulated in the RBI Directions. Photo: Arunangsu Roy Chowdhury | Photo Credit: ROY CHOWDHURY A Recently, the RBI cautioned the public against some co-operative credit societies using the word “bank” in their names. Further, it has been clarified that t...

ICCSL A Genuine and Advanced Co-operative Credit Society Indian Co-operative Credit Society Limited (ICCSL) has always operated for the advancement of the community intending to fully commit our services to the welfare of the shareholders in States and Union Territories. We hold the distinction of being the only credit co-operative society in aforesaid Indian states and Union Territories with many schemes and financial plans for less fortunate people in societies and businesses. Regardless, it takes something better to make a credit co-operative society to bring a contrast in people's lives and society as a entirety. It is exactly become an important aspect since our genesis. Today, we are a model credit co-operative society with a track history of more than 2,00,000 satisfied members and 10,000 counsellors.

By Jyotindra Mehta, Nafcub President Co-operative credit societies are expected to provide facilities to their members in the same way as in case of banks and so they accept deposits from members in cash and also repay deposits in cash. Society is also required to give loans in cash to their members to fulfill immediate needs. But as per section 269SS, no person, subject to certain exceptions can accept loans or deposit of money otherwise than by account payee cheque or draft and in similar way as per section 269T of Income Tax Act. Deposit cannot be repaid otherwise than by cheques or draft. The applicability of section 269SS & 269T is not only limited to single cash transactions of Rs.20,000/- but it covers even aggregate of cash transactions which exceeds Rs.20,000/-. The banks are exempted from Section 269SS & 269T and so banks are accepting and repaying deposits in cash. But co-op credit societies do not fall in the list of exceptions of Sec. 269SS and 269T. Co-operative credit societies are subject to control of co-operative registrar and also subject to audit by an auditor appointed by the co-operative department of the state government. KYC documents of all the members have to be obtained by the society and if the society found making mischief of accepting deposit without KYC, tax can be levied on such cash deposit u/s 68. The intention of Section 269SS and 269T is only for the curbing practice of reflecting huge cash deposits found during search actions. So, apply...

A credit union is a member-owned financial cooperative, democratically controlled by its members. The Co-operative Credit Institutions in India can be classified as under a three-tier structure- Primary Credit Societies at the bottom; Central Co-operative Bank at the middle; and State Co-operative Bank at the top. A credit union is a member-owned financial cooperative, democratically controlled by its members, and operated for the purpose of promoting thrift, arranging credit at competitive rates, and providing so many other financial services to its members. The Co-operative Credit Institutions in India can be classified as under a three-tier structure. (i) Primary Credit Societies at the bottom (ii) Central Co-operative Bank at the middle (iii) State Co-operative Bank at the top The primary societies are functioning in the various towns and villages, the Central Banks at the district headquarters and the State Co-operative Banks at the state capitals forming the apex of the system. The Reserve Bank of India assists the co-operative structure by providing concessional finance through NABARD in the form of General Lines of Credit for lending to agricultural & allied activities. Thus, the whole system is integrated with the Banking structure of the country. Let us have a discussion about these institutions one by one. (i) The Primary Agricultural Credit Societies: A primary society is an association of borrowers and non-borrowers residing in a particular locality and taking...