RBI trying to destroy coop sector: SCDCC chief

RBI trying to destroy coop sector: SCDCC chief

SCDCC Bank Chairman M N Rajendra Kumar accused the Reserve Bank of India (RBI) of attempting to destroy the cooperative sector by bringing cooperative societies under the tax net.

He spoke at a one-day training on TDS, GST and other income tax related issues for presidents and CEOs of Primary Agriculture Credit Cooperative Societies on Monday.

“RBI comes to the rescue of commercial and nationalised banks that face financial crisis. However, no one comes forward to help cooperative societies. By bringing the cooperative sector under the tax net, an attempt is being made to destroy the sector,” he charged. 

Cooperative societies take on the burden of the government and function. They bear losses when the government delays repayments or during loan and interest waivers, he pointed out. 

He said, “The cooperative sector is strong and will face up to all challenges. It is not right to curtail all cooperative societies because of the irregularities committed by a few such societies”. 

He said that cooperative societies were making progress by depending on their own resources. “A situation exists wherein we cannot force farmers to repay loans. Keeping farmers’ interest in mind, both Centre and state governments must come to the rescue of the cooperative sector,” he added. 

Dakshina Kannada District Cooperative Union President Harish Acharya said there was a proposal by the Cooperative Union to set up a data centre with comprehensive details on all the cooperative societies in each district. The project would be initiated in Dakshina Kannada. 

Karnataka State Cooperative Federation Managing Director N Arun Kumar and others were present.