- After Kerala, West Bengal, Maharashtra, Tamil Nadu, and Jaipur, the Enforcement Directorate is focusing on DCCs in Karnataka.
- A record amount of cash deposits estimated to be between ₹100 crore to ₹200 crore after demonetisation in DCCs.
- RBI asked DCCs not to accept deposits in banned currency after November 14 in view of large sum deposit post currency ban.
After cracking down big names like Axis Bank, Kotak Mahindra Bank, and Co-Operative banks in various states across the nation, the Enforcement Directorate (ED) is going after District Cooperative Central Banks (DCCs) in Karnataka in its hunt to recover unaccounted for cash.
The District Cooperative Central Banks (DCCs) of Karnataka have received a record amount of cash deposits estimated to be between ₹100 crore to ₹200 crore after the announcement of demonetisation.
Earlier, raids were conducted in many district cooperative banks in Kerala, West Bengal, Maharashtra, Tamil Nadu, and Jaipur, now the ED officials have visited DCC banks located in Mysuru, Bagalkot, Belagavi, and Kodagu to verify accounts and the account holders who deposited a large sum of money after currency ban.
ED teams also verified DCC accounts in Kolar, Mandya, Ballari, Shivamogga, and Dakshin Kannada districts and recorded the deposits of the large sum of money.
After the November 8 demonetisation announcement, the Enforcement Directorate is working closely with CBI stop money laundering and to curb corruption by raiding various institutions where people might have deposited their black money to convert them into white.
As DCCs are mostly located in rural areas, the ED suspects that many depositors are turning towards these banks to deposit their illegal money hoping to go unnoticed.
Earlier, RBI asked DCCs not to accept deposits in banned currency after November 14 as a huge sum of money in old currency got deposited during the first 6 days of demonetisation.
Last Updated 31, Mar 2018, 7:03 PM IST