Ensure Smooth Vdis Inflows, Banks Told

The Reserve Bank of India has asked chief executives of all public sector banks authorised to accept income tax to immediately take a review of the adequacy or otherwise of the banking arrangements already made for receiving deposits under Voluntary Disclosure of Income Scheme (VDIS), 1997. The central bank has also asked these banks to advise their concerned branches to open additional counters in case of rush for receipt of deposits of taxes. It has also asked branches to deploy external staff where required and to extend the banking hours for receipt of taxes in case of rush. RBI has asked them to accept cash deposits in all cases even if the deposit is large and also to accept ordinary challans if tendered by declarants provided it has superscribed VDIS on the face. The apex bank has made it clear to banks that they should not turn away any depositor on grounds of insufficiency of staff or infrastructure or any other reason.Besides this, banks should ask staff attached to the felicitation or reception counters at large branches to assist the assessees or declarants under the VDIS.

Banks should also prominently display at the entrance of the branches the names of officers at the branches to be contacted by the declarants in case of difficulties or problems. The central bank has instructed the chief executives of all public sector banks authorised to accept income tax to advise their regional managers to visit the designated branches to ensure adequacy of the banking arrangements for receipt of taxes under the VDIS.

RBI had, at the commencement of the scheme, asked these banks to make adequate banking arrangements in the concerned branches of their banks for acceptance of deposits under the scheme. The last date for filing declarations under the VDIS being December 31, 1997, the government expects rush of assessees or declarants to continue in remaining currency period of the scheme.