2 January 2017
PUNE: More than 50 days
have passed since Prime Minister Narendra Modi announced demonetisation of
old currency notes but the cooperative banking sector is still reeling under
its effects. Lack of cash availability and increased surveillance in terms of
raids/surveys by various investigation agencies has inflicted a sense of
uncertainty in both the District Central Cooperative banks (DCCB)s and the
Urban Cooperative banks (UCB)s.
Since
demonetisation, the 31 DCCBs and over 500 UCBs in Maharashtra had been under
the radar of the Income Tax Department and the Enforcement Directorate. Both
the agencies had been focussing on these banks to check for any exchange of
black or unaccounted-for money.
The I-T
department, in particular, was interested in scanning the details of the
transactions carried out between November 10-14 at the DCCBs. The Reserve Bank
of India (RBI) had debarred the DCCBs from exchanging or depositing old
currency notes post November 14. Rs 4,700 crores accumulated in the DCCBs are
yet to be remitted. Although the Supreme Court had allowed the amount to be
remitted, lack of clear guidelines from RBI has delayed the process.
As the DCCBs wait
for the resumption of their normal banking duties, they seem to have come under
the I-T scanner. I-T officers have confirmed that they had been receiving
directions to conduct searches and raids at the banks. The searches were,
invariably, related to the amount deposited at the DCCBs during the first four
days of demonetisation. In December, both the Snagli and Satara DCCBs were
inspected by the I-T Department to check details about such deposits. Sources
from the department had said that similar raids are in the offing.
Pune, Satara,
Sangli, Thane, Mumbai DCCBs had seen more deposits than other banks. As per the
guidelines of the NABARD, the DCCBs had submitted the KYC details of their
accounts and were awaiting verification.
BJP MLC Pravin
Darekar, who had moved the Supreme Court regarding the ban on DCCBs, compared
these raids to a trial by fire. “Banks that have nothing to hide need not fear
about the raids. It’s a trial by fire for them but I am sure they will come out
of it well,” he said.
Darekar, however,
agreed that the present situation may harm the reputation of these banks, which
have an extensive network in rural areas.
Like the DCCBs,
the UCBs had also been hit by demonetisation with lesser availability of cash
and increased surveillance. The I-T department had already raided two banks to
check the amounts deposited and more such raids are in the pipeline. Bankers
said that a recent circular has compelled them to provide details of higher
value transactions by 1.00 pm every day.
Vijay Dhere,
president of the Pune Union of UCBs, said that after a persistent follow up
with RBI they had received just 25 per cent of their currency demand. “We hope
the situation improves soon,” he said.
0 comments:
Post a Comment