RBI and government invariably equate the cooperative banks with the national banks and accordingly pursue a flawed policy of collecting the same type of tax from both. It is unreasonable to force the cooperative banks to pay a high tax,said Mr Inderjeer Singhjee Chairman of Ramgarhiya Cooperative bank in Delhi.
If government is keen to keep the cooperative banks in good shape, it needs to formulate a tax policy that takes into account the specific conditions of the cooperative banks. The current confusion should come to an end as the increased tax burdens could easily upend the cooperative banking sector in the country, said Mr Singhjee while talking to the indiancooperative .com correspondent.
We have always obeyed the rules framed by the RBI and our bank has never been a defaulter. We have never been punished by the apex bank for any infractions. However, what galls us is the RBI’s intention to pack our board of directors with its own men. We would appreciate if we could be allowed to enjoy a modicum of operational freedom, Inderjeet Singhjee added.
According to him, Ramgarhiya Cooperative bank was established in 1941. The bank has 4 branches and its board of directors includes two women and two experienced professionals. The bank collects a profit of 78 lakhs per annum. It is planning to open two new branches. It has in all 12 thousand account holders. It provides loans to the industrial sector and shows special consideration to the senior citizens.
Happy with the performance of the bank, the Chairman informed that the bank has its own building and is associated with Nafcub, the national federation body of urban cooperative banks. Ramgarhiya bank is taking part in training programs and seminars towards preparations for the international year of cooperation, added the Chairman Mr Inderjeet Singhjee.