Maharashtra co-op banks under scanner for receiving Rs5,000 cr in 4 days
15 December 2016
District Central Cooperative (DCC) banks in Maharashtra collected Rs5,000 crore in old notes in just four days between 10 and 14 November, before the Reserve Bank barred these banks from accepting demonetised currency notes.
Maharashtra has 31 DCC banks, which are controlled by local politicians and have been under scanner for financial mismanagement in the past.
As most accounts in the cooperative (DCC) banks are of farmers, the National Bank for Agriculture and Rural Development (NABARD), the apex bank of cooperatives, is monitoring the accounts for any case of "suspicious deposits" or financial mismanagement.
While initially only accounts with more than Rs2 lakh deposits will be scrutinised, the scrutiny will be extended to all deposits over time, reports quoting sources at state co-operation department said.
RBI had allowed 3,800 DCC bank branches across the state to collect old notes for four days but these banks collected a whopping Rs5,000 crore in such a short period as four days.
NABARD officials are finding it difficult to explain the sudden surge in deposits as the average deposits and transaction history of certain accounts does not give any clear indication of the mode of operation.
The Sangli DCC bank had collected approximately Rs320 crore in old notes while the Pune DCC bank received cash deposits of Rs600 crore, The Times of India reported quoting a NABARD official.