National Bank for Agriculture and Rural Development (Nabard) has embarked on a massive campaign to unearth the black money deposited in co-op banks across India in the wake of demonetization. Co-op banks were allowed to participate in the exchange process for the first three days in which, agencies fear, crores of black money was laundered.
According to media reports, the move to collect information of bank accounts under suspicion for depositing huge amounts of money have started at all 391 cooperative banks in the country.
Majority of cooperative banks including those in the BJP ruled states are believed to have registered unprecedented deposits in the wake of demonetization announced from the midnight of November 8.
Media reports say several branches of co-op banks remained active till midnight on November 8 to “adjust” black money. The names of prominent politicians involved in getting their fund deposited across states are being mentioned in this connection.
To begin with, only accounts where amount above Rs 2 lakh is deposited are under scrutiny as of now but the parameters of probe may expand after this is done, said a source on condition of not being identified.
Several Chairmen of co-op banks where probes have begun say the scrutiny team comprises of three persons- two Nabard officials and one representative of RBI. There is some confusion that while these co-op banks with licenses from RBI are controlled by states, they get fund for refinance from Nabard. Since Nabard has no fully-developed economic intelligence wing, it has roped in RBI in investigations.
Several co-op banks in Kerala, West Bengal, Uttar Pradesh and that of other states are being mentioned in connection with rampant cases of money laundering in the wake of demonetization.
Batting from the front Kerala Chief Minister Pinarayi Vijayan said there is “no black money’’ in cooperative banks” and everything was according to rules and regulations.
West Bengal cooperative minister had described the allegation of illegal money being deposited in branches of West Bengal state cooperative bank as untrue and a baseless rumor.