Money Laundering Through Banks

  Money laundering: Over 480 urban cooperative banks under lens-Hindu Business Line

Over 480 urban cooperative banks across the country have come under the scanner of the Reserve Bank of India (RBI) for alleged violation of anti-money laundering laws.

The central bank has been taking strict action like imposition of penalty and denial of branch expansion against the erring urban cooperative banks (UCBs), official sources said.

The RBI has issued instructions to its regional offices to undertake scrutiny of 489 UCBs to ascertain compliance of Know Your Customer (KYC), Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) guidelines, they said.

 

The matter of misuse of UCBs, over which there is dual control by central and state governments, for money laundering has been a matter of concern of central intelligence agencies.

RBI has also been coordinating with the state governments on the issue and advised strict action against the defaulting UCBs, they said.

 

The central bank has also issued guidelines to block accounts of all non complying customers, the sources said.

Most of the urban cooperative banks were lax on regulatory issues and were used as conduits for money laundering, they said.

 

It has been observed that the problem of irregularities in the UCBs is of “grave nature” given their wide reach and penetration across the country with 8,100-plus branches which have huge deposits to the tune of Rs. 2.09 lakh crore and advances worth Rs. 1.35 lakh crore, according to a report by Central Economic Intelligence Bureau (CEIB).

 

“The issue also acquires serious proportions because it jeopardises the hard earned money of the public which is put at stake due to non-adherence to the RBI regulations or instructions and also letting the banking channels being abused by unscrupulous people in laundering money which can play havoc with the financial health, safety and security of the country,” the report has said.

 

Sources said UCBs are inspected annually or once in two years depending on their ratings or classification. About 70 per cent of these urban cooperative banks are subjected to inspection every year. CEIB officials are in touch with RBI and keeping a close watch on any case of suspected money laundering via these banks, they said.


Mu Comments On
Alternative Government In Jammu & Kashmir

Formation of government by BJP and PDP in the state of Jammu and Kashmir has become a matter of debate and political parties other than BJP and PDP are indulged in dirty politics and media men are fuelling fire to disturbed situation in the state. It is really very much unfortunate and sad for the country.

　
Opponents of BJP say that BJP is power hungry and some others tag PDP with anti-national term. But as a true patriot, one has to understand the ground reality and suggest best course of action, best political alternative and best common minimum programme which suits the state and stop trying to resort to dirty politics to serve their self interest to grab power by hook or by crook

It is not a case of power hungry, it is a case of super sacrifice by BJP that it adjusted and compromised its principles to give power to PDP to save expenses on fresh election and to pave the way for a democratically elected government.

Had BJP not aligned with PDP or NC, there could have been a vacuum or President's rule in J&K which meant indirect role by BJP.

Can anyone suggest better option?

Will it be NC-PDP o r NCBJP or Congress-PDP or Congress NC or No government ? Here it is important to point out here that even Congress Party tried to form government with PDP, NC extended unconditional support to PDP in formation of government and even NC and Congress Party tried to join hands with PDP .

How is it that when BJP join hands with PDP it becomes a matter of thorn for all?

If any state want growth and development , ruling party which enjoy majority or a coalition government with conflicting parties have to reconcile and work under common minimum programme and mutually agreed programme and avoid all controversial issues. Otherwise frequent election means loss of money as well as loss to image, disturbance in public utility services, stop on developmental work and finally risk to safety and security of the state

People like Aditynath or Togaria or Ashok Singhal or persons  like Mufti or Farooq Abdullah or Obessi family or  an type of hard core fundamentalists are dangerous for the country, for growth and for common men.

　
Mufti has wilfully resorted to controversial statements, he has released a prisoner bypassing judiciary, he has praised Pakistan and not army for successful election , all these statements and acts cast doubt on his integrity and loyalty to the nation which none of Indians will like.

　

All Political parties should come together and work for the growth of the country and for common men keeping aside all mean minded approaches based on caste , communities , region or religion.

It is sad that political party like Congress Party which is hundred years old is indulged in dirty politics over important bills like Land Reform bill or Insurance bill or banking reform bill or judicial reforms bill . Parties like RJD, JDU, SP, BSP all are indulged in dirty politics to malign BJP and thus harming the country. It is always the common men who suffer due to dirty politics of political parties and media men always add fuel to fire and the never take the initiative to form the views in national interest.

Lastly if PDP goes against the spirit of common Minimum Programme arrived at with BJP , one cannot take a hard step of breaking relation with PDP on each petty issues . After all there is some limitation to take harsh step for BJP.