The Role Of CSR In Banking Industry
The companies Act, 2013 has introduced the concept of CSR where every company who has fulfilled the eligibility criteria of section 135 of the companies Act, 2013 so it becomes mandatory to set-aside 2% of their net profit and utilize the same for approved CSR activities. If private sector banks incorporated as per companies Act, 2013 so required to ensure the compliances of CSR provisions. There is other bank like nationalized bank are not incorporated as per companies Act, 2013 so they are not covered under section 135 of the companies Act there is optional for nationalized bank to spend 2% of net profits on CSR activities. However they are required to spend 1% of net profits through donations as may be specified by the Reserve Bank of India (RBI).