I understand Repco bank is giving high interest rates on fixed deposits. Additional bonus is, they do not deduct any TDS and don't need PAN card as well. Concern is, their cheques are not accepted by any bank and we can only withdraw money from them. They claim that this is "Government of India enterprise". Need some information on this bank as this is not registered as a bank with RBI and how safe is our deposit there.

I am hearing about this Bank for first time.

Please check if the deposits in the bank are DICGC insured

Reserve Bank of India

Also read this - :::..DICGC - For Depositors - A Guide to Deposit Insurance

to see how much deposit is insured per person.

Sorry are you talking about this bank? I am not sure

Repco Bank - Govt. Coop Bank - Offers Loans, Deposits, Safety Vaults

I guess you not interested in deposit fds. But facilities like privacy provided by not sharing personal details which you think will safeguard you against IT officials.

If this facility was available at home why would there had been 44 lakh crore worth of black money in Swiss banks. I am not aware about this bank but yes there is too much sugar coating if the detail you mentioned is correct.

TDS not deducted. If you don't deduct TDS then I guess you are liable for prosecution. Why do banks deduct tds when it crosses a limit? Reason is indirectly it keeps a tab on black money as government can't check each and every FDS and whether tax paid on it or not. So indirectly its deducted and money comes to their pocket plus also in any wrong doing they at least receive something rather than nothing.

Only thing this facilities you mention can be provided is to refugees. But than again government never give such easy hand as you know for freebies we Indians are ready to become refugees in our own country.

I seriously doubt your facts you mentioned.

REPCO is a government enterprise and comes under the Ministry of Home Affairs.

Even though REPCO uses "bank" in its name, REPCO is actually a cooperative society and not a bank.

That's why its cheques are not accepted by other banks.

I found this 2009 article. According to the article, REPCO management wanted to convert REPCO to a proper bank, but it seems that hasn't happened yet.

Repco cooperative wants to become a commercial bank

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Thanks for the inputs. This bank claims that they support repatriates from Sri Lanka and Bangladesh.

Thanks for the info. So a cooperative society, a government of India undertaking - is it legally valid to do this kind of transactions - no TDS deductions, to what extent can we rely on these people?

All banks do TDS deductions only after the interest per year crosses a certain limit - I think Rs. 10000, but not sure.

Also, no TDS doesn't mean you aren't liable for tax.

From their webpage - http://repcobank.com/deposit_schemes.html, it looks like the interest they are offering is 10.10%.

You can find other banks with give similar interest where your deposit would be insured up 1 Lakh (deposit + interest).

Tamilnad Mercantile Bank offers 10.5% for 20 months I guess. If you want I can search more bank details.

Co-operative societies don't have to deduct TDS on interest paid to depositors.

See:

Section 194A(3)(v) of the IT Act.

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From reading the act it doesn't seem any different from a Bank. They have to deduct above 10K & not below 10K - just like a bank or PO.

See 194A(3):

Under that see (v):

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