Cooperative banks cannot accept PMGKY deposits

• The government announced that cooperative banks will not be authorised to accept deposits under the Pradhan Mantri Garib Kalyan Deposit Scheme.
• According to the official notification, “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.
• This follows reports of irregularities in book-keeping at cooperative banks.

About Pradhan Mantri Garib Kalyan Deposit Scheme:
Eligibility for Deposits.— The deposits under this Scheme shall be made from the 17th day of December, 2016 till 31st day of March, 2017, by any person who declared undisclosed income under sub-section (1) of section 199C of the Taxation and Investment Regime for Pradhan Mantri Garib Kalyan Yojana, 2016.
Form of the deposits.— The deposits shall be held at the credit of the declarant in Bonds Ledger Account maintained with Reserve Bank of India. A certificate of holding shall be issued to declarant in Form I. The Reserve Bank of India shall transfer the deposit received under this Scheme into the designated Reserve Fund in the Public account of the Government of India.
Authorised banks

• Application for the deposit in the form of Bonds Ledger Account shall be received by any banking company to which the Banking Regulation Act, 1949 (10 of 1949) applies (hereinafter referred to as Authorised Banks).
• The Authorised Bank shall electronically furnish the details of deposit made in Form V to the Department of Revenue, Ministry of Finance, Government of India not later than next working day to enable the Department to verify the information of the deposit before accepting the declaration.
• The authorised bank shall upload the details of deposit into Reserve Bank of India’s Core Banking Solution ‘e-Kuber’.
• The Reserve Bank of India and Authorised Bank shall maintain the confidentiality of the data received in this regard.

Subscription and Mode of investment in the Bonds Ledger Account.—

• The deposits shall be accepted at all the Authorised Banks.
• The deposits shall be made in multiples of rupees one hundred.
• The deposit by a declarant shall not be less than twenty-five per cent of the undisclosed income declared under sub-section (1) of section 199C of the Taxation and Investment Regime for Pradhan Mantri Garib Kalyan Yojana, 2016.
• The deposit shall be made in the form of cash or draft or cheque drawn in favour of the authorised bank accepting such deposit or by electronic transfer.

Effective date of deposit. — The effective date of opening of the Bonds Ledger Account shall be the date of tender of cash or the date of realisation of draft or cheque or transfer through electronic transfer.
Transferability.— The transferability of the Bonds Ledger Account shall be limited to nominee or to the legal heir of an individual holder, in the event of his death.
Interest. — The deposits shall not bear any interest.
Tradability against Bonds.— The Bonds Ledger Account shall not be tradable.
Repayment.— The Bond Ledger Account shall be repayable on the expiration of four years from the date of deposit and redemption of such Bond Ledger Account before its maturity date shall not be allowed.

By: Vishal