Nabard chief gives coop banks clean chit
20 May 2013 12:07 AM GMT
Amid allegations of cooperative banks being used as conduits for money laundering, Nabard, which jointly regulates such lenders, has said that it has found no shortcoming pointing towards any such activity.
'Every year we do an inspection and we have not found anything like that,' National Bank for Agriculture and Rural Development's (Nabard) chairman Prakash Bakshi told PTI over the weekend, when asked about the recent controversy over money laundering. A probe launched by the Reserve Bank of India following allegations of non-compliance with anti-money laundering measures and know your customer (KYC) norms by top private banks has reportedly found that cooperative banks are used as conduits.
Not having the entire bouquet of service offerings, the cooperative banks tie-up with scheduled commercial banks to expand their reach. Cooperative banks can accept cash under Rs 50,000 from customers (the limit at which reporting to tax authorities sets in). They usually earn commission from larger banks for providing services.
'Every year we do an inspection and we have not found anything like that,' National Bank for Agriculture and Rural Development's (Nabard) chairman Prakash Bakshi told PTI over the weekend, when asked about the recent controversy over money laundering. A probe launched by the Reserve Bank of India following allegations of non-compliance with anti-money laundering measures and know your customer (KYC) norms by top private banks has reportedly found that cooperative banks are used as conduits.
Not having the entire bouquet of service offerings, the cooperative banks tie-up with scheduled commercial banks to expand their reach. Cooperative banks can accept cash under Rs 50,000 from customers (the limit at which reporting to tax authorities sets in). They usually earn commission from larger banks for providing services.
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