Govt to help co-op banks to become IT savvy

NEW DELHI, APR 21: The government would begin a dialogue between the Income Tax authorities and Urban Cooperatives Banks (UCB) for various...

NEW DELHI, APR 21: The government would begin a dialogue between the Income Tax authorities and Urban Cooperatives Banks (UCB) for various tax related issue, Minister of State for Finance, Balasaheb Vikhe Patil said here today.

The Minister’s assurance follows the recommendations given by the UCBs after the two-day (April 20-21) conference in the capital. In its recommendations, UCBs had stated that urban banks are being treated by the income tax department as a source of information to be used to broaden their tax net. Apart from it, the banks had stated that IT department should not ask for voluminous information for tax assessment and in case of this information is provided the cost of it should be borne by the IT authorities.

Patil said in the new millennium UCBs will have to face new challenges in the wake of increased competition due to development of information technology and liberalisation in the banking sector. "Unprecedented developments in IT and de-regulated regime are two important factors which have brought in increased competition in the banking sector," he said.

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In view of the increased competition being faced by UCBs, Patil said "in this new environment there is need for banks to professionalise their functions,".

But he said in the era of speedy developments in information technology and globalisation it is important to set higher goals and strive to achieve them without any loss of time. "Potential of the UCBs is immense and the most formidable challenge is to realise it," he added. The Minister said the cooperatives banks have been facing problems but they have potential to overcome all the hurdles and become active in the development process.