<p>The government on Friday barred co-operative banks from accepting deposits under the Pradhan Mantri Garib Kalyan Yojana (PMGKY).<br /><br /></p>.<p>The decision comes amid reports of massive irregularities in the account books of these lenders after the November 8 demonetisation. The amnesty scheme, aiming to lock part of unaccounted income in long-term deposits, was notified last month. It is open till March 31.<br /><br />According to its original provisions, anybody declaring undisclosed income could pay a tax of 50% and park 25% in a four-year deposit in any bank. About Rs 16,000 crore was deposited in co-operative banks after the note ban.<br /><br />But after Friday’s decision, co-operative banks will not be eligible to receive such deposits. “It is clarified that co-operative banks are not authorised banks to accept deposits under PMGKY, 2016,” an official statement said after the government amended an earlier notification dated December 16, 2016.<br /><br />Holders of unaccounted cash will have to pay tax and then fill up a bank challan to benefit from the four-year deposit scheme. Authorised banks have to electronically furnish details to the revenue department the next working day to enable verification before the deposit is accepted under PMGKY.<br /></p>
<p>The government on Friday barred co-operative banks from accepting deposits under the Pradhan Mantri Garib Kalyan Yojana (PMGKY).<br /><br /></p>.<p>The decision comes amid reports of massive irregularities in the account books of these lenders after the November 8 demonetisation. The amnesty scheme, aiming to lock part of unaccounted income in long-term deposits, was notified last month. It is open till March 31.<br /><br />According to its original provisions, anybody declaring undisclosed income could pay a tax of 50% and park 25% in a four-year deposit in any bank. About Rs 16,000 crore was deposited in co-operative banks after the note ban.<br /><br />But after Friday’s decision, co-operative banks will not be eligible to receive such deposits. “It is clarified that co-operative banks are not authorised banks to accept deposits under PMGKY, 2016,” an official statement said after the government amended an earlier notification dated December 16, 2016.<br /><br />Holders of unaccounted cash will have to pay tax and then fill up a bank challan to benefit from the four-year deposit scheme. Authorised banks have to electronically furnish details to the revenue department the next working day to enable verification before the deposit is accepted under PMGKY.<br /></p>
