The Enforcement Directorate (ED) has begun probing around 300 district co-operative banks across India, with one such bank in Mumbai -Shamrao Vithal co-operative Bank reporting Rs 1,400 crore in deposits post demonetisation.
When the agency began to scrutinize the bank's accounts, it came to light that it had actually received only Rs 900 crore in `deposits'. The remaining Rs 500 crore was merely an overstatement by the bank in its report to the Reserve Bank of India.
The RBI referred the case to the ED for an investigation, along with other similar cases. According to a source, ED officials suspect massive money laundering, and have asked the Mumbai bank to provide all transaction details for examination.
The ED has asked the 300 district co-operative banks to provide CDs containing details of all deposits and other transactions, particularly the deposits made since the demonetisation of Rs 500 and Rs 1,000 notes on November 8.
The agency will examine cash deposits, money transfers through RTGS (real time gross settlement), new accounts opened since demonetisation, and accounts these banks may have in other government and private commercial banks where they deposit their collections.