Financial experts say black money is being laundered through gold and cooperative societies and trusts. Sources say after demonetization scores of cooperative societies accepted black money as deposits in back dates.
Banking officials estimate that around Rs 2,000 crore was quietly deposited in various credit societies and district cooperative banks within four days of demonetisation of high denomination notes and surprisingly there was no queue in front of these banks, reports Times of India.
“The credit societies do not ask for the source of income or TDS filed. An RBI money laundering probe found that cooperative banks across India were involved in illegal transactions. Around 480 urban cooperative banks were under the RBI scanner for money laundering a year ago,” an official said.
Though urban cooperative banks, which are governed by RBI norms had committed these financial crimes, in the case of credit societies the bad debt runs into crores of rupees.
According to an unconfirmed report, income tax department has issued notices to the societies and trusts to submit their cash balances soon.
Most of the cooperative societies are run by politicians with the depositors mainly being their cronies.
Cooperative banks in rural areas are violating banking norms laid down by the govt. to fight illegal money, reports Times of India.
These banks are opening backdated fixed deposits, issuing demand drafts (DDs) and pay orders against cash, mostly from politicians.
Those familiar with the cooperative banking scene in the countryside say these banks are openly helping people with black money.
The RBI is alive to the problem and taking steps to stop cooperative banks from carrying out illegal money transactions, sources say.