NAFCUB Urges Urban Co-op Banks To Donate To PM CARES

Money & Banking
K Ram Kumar

Mumbai | Updated on

March 30, 2020

Published on

March 30, 2020

The National Federation of Urban Co-operative Banks and Credit Societies Ltd (NAFCUB) has appealed to all urban co-operative banks (UCBs) to donate to the Prime Minister’s Citizen Assistance and Relief in Emergency Situations (PM CARES) fund.

UCBs can give donations up to 2 per cent of their previous year’s net profit as donation to PM CARES on or before March 31, it said. This is 1 per cent in addition to the regular limit of 1 per cent permissible.

As of March 2019, there were 1,544 UCBs which, per RBI data, collectively posted a net profit of ₹4,009 crore in FY19.

At the rate of 2 per cent of previous year’s net profit, the UCBs can collectively contribute about ₹80 crore to PM CARES. Donations to the fund are eligible for deduction under Sec80(G) of the Income Tax Act, 1961.

“We also understand that a large number of bank staff members are eager to donate a minimum of one day’s salary towards the PM CARES Fund,” said Jyotindra Mehta, President, NAFCUB. He requested the banks to collect the voluntary contributions and remit them to the PM CARES account.

Mehta said the resources at the disposal of the government are inadequate to meet the medical and economic challenges that lie ahead due to the pandemic. Hence, it becomes the prime responsibility of every citizen and every organisation to share the burden.

Published on March 30, 2020

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