RBI has agreed to share relevant portions of its urban cooperative banks’ inspections reports with a central economic intelligence wing and this would help check money laundering and other violations of banking laws, say sources.
Urban cooperative banks have been in the spotlight recently for being misused for money- laundering but the revelation has greatly worried central intelligence agencies in the country, reports a news outlet.
The RBI had earlier refused to share details citing legal hurdles.
According to the ministry of law, provisions of the banking regulations Act and other banking laws do not restrain the apex bank from sharing extracts of inspection or scrutiny report with law enforcement agencies.