Cooperative Banks Black Money Deposits India, Kerala Raid by RBI, IT

From demonetization of currency in India Indian government has been trying to find out all places where black money is hidden. Cooperative banks are suspected to be holding crores of money deposited in binami names. Way of performance of co-operative banks was in local areas. Till now Cooperative banks were not under guidelines of Reserve Bank of India. This made i impossible for RBI or Income Tax department to lay hands over deposits of Co-Operative banks. This was when demonetisation of old notes of Rs.500, Rs.1000 denominations were done by Indian Primie Minister on 8th November 2016.

Only nationalized banks were allowed permission to exchange currency notes by accepting old notes. Co- Operative banks are said to have deposits of crores of un-accounted money.When demonetization happened all money in hands of co operative banks which were of old currency could not be changed by them. Customers were not able to get deposits of money in their matured accounts because cash was not allowed to be exchanged. Old notes were taken as deposits in savings bank accounts. Exchange of notes was not possible for Co Operative banks as RBI did not give new notes to them. This has created lot of confusion and panic among customers. But there is nothing to fear at all for those who have evidences revealing income source.

Co-operative banks have filed petition with Supreme Court against Reserve Bank of India. These banks are not allowed exchange of currencies as they fear that people will exchange black money for real currencies. Protests against Government is going on from various parts of country by people who have deposited money with Co-Operative banks. There are lot of common people who deposited their savings as deposits with co-operative banking institutions. They are not able to get back this money due to black money deposited in crores by politicians, business men, real estate mafia.etc.

Kerala, Bengal, Maharashtra and many other Indian states have crores deposited in Co-operative sector. Money deposited here is given back as cash without giving cheque. Even if cheque is given, it can be exchanged in any person’s account. There are lot of loop holes in functioning of banks in co-operative sector and these are being closed by RBI.

Preventing exchange of old notes at co-operative banks has affected economic situation of entire Kerala. On Friday, 18th November 2016 Chief minister Pinarayi Vijayan and all Ministers in Kerala Council did a strike in front of Reserve Bank of India office at Bakery junction in Trivandrum.

Huge number of people attended this protest outside RBI office organized by LDF. In case of strike against central government, LDF – UDF are of same opinion. New Kerala Cooperation minister is Kadakampally Surendran, while AC Moideen was handling this department till now.

LDF party decided to file a petition with Supreme Court against withdrawal of old currency notes from co operative banks to exchange currency notes.

Co operative banks are feeling helpless with no currency to give back to people who come to branch. Presently only people who deposited crores of money in these banking sectors without revealing identity or tax have to feel unhappy.

Finding black money in hands of rich and making it taxable was main aim of this raid. RBI was not able to lay their hands on Co-operative banks till now.

Cooperative Banks Black Money Deposits

Interest rate given by Cooperative Banks to customers is impressive and this gave them a great mileage by getting lot of deposits. Black money depositors in India will have lot of problems, when they try to hide money through these banks. Increase in deposits at co operative banks made Income tax department and IT raise complaint to RBI.

Cooperative Banks in India have lakhs of crores all together for which No tax is paid and RBI has no control. Also there is no KYC details collected from many customers. When KYC details are added along with Aadhar number .etc. all transactions will become legal. Kerala state accused that Central government is trying everything to destroy co-operative sector by not providing them funds.

Interest rate given by Cooperative Banks to customers is impressive and this gave them a great mileage by getting lot of deposits. Black money depositors in India will have lot of problems, when they try to hide money through these banks. Increase in deposits at co operative banks made Income tax department and IT raise complaint to RBI.

There are complaints regarding co-operative banks functioning at places in Kerala like Idukki, Thrissur, Kannur, Kozhikode. Transactions at Calicut City Co-operative (Sahakarana) banks and Kodiyeri, Azhiokode, Madayi, Anapanthy, Cheruthazham .etc. are under strict observation by IT Dept.

Crores of money is being deposited in Current accounts after demonetization. There is an understanding between New generation banks and Co operative banks through which Demand drafts (DD) are issued to change black money.

District Co operative banks in Kerala is going to file a petition with Supreme court regarding RBI and Central government’s decision to not allow old currency exchange through their banks.