Source: News Bharati English22 Jan 2017 12:20:02

New Delhi, January 22: Government has barred cooperative banks from accepting deposits under Pradhan Mantri Garib Kalyan Yojana scheme. Under this scheme those who is declaring has to deposit 25% of the declared undisclosed income in an authorised bank as notifies by the government.

After the announcement Ministry of Finance said in a statement that "It is clarified that co-operative banks are not authorised banks to accept deposits under PMGKDS, 2016.” This move came against the actions after Income Tax department observed that the banks were suspected in converting black money into white, post demonetization. “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 (10 of 1949) applies,” finance ministry added.

Under PMGKY scheme the taxpayers are supposed to deposit 25% of the declared amount as interest free deposits for 4 years. Earlier RBI approved that this deposit could be made with any banks but now after this move cooperative banks can’t accept such deposits under PMGKY scheme which is open till 31st March. After this announcement cooperative banks will be under strict surveillance. The authorised banks will have to submit the details of deposit electronically to the revenue department on the next working day to enable information verification of the deposit before accepting the declaration under PMGKY scheme. The details will be kept confidential with RBI and authorised banks.

This announcement came in support of demonetization drive and against those who tried to escape the drive. Banks are asked to provide data about deposits exceeding Rs 2.5 lakh made during November 9-December 30 period. They have also asked banks to collect PAN details of all account holders, except in case of Jan Dhan accounts.