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Maharashtra banks to closely monitor transactions

K Ram Kumar Mumbai | Updated on September 26, 2019 Published on September 26, 2019

As part of precautions and measures for the upcoming State Assembly elections, banks in Maharashtra will closely monitor and report cash deposits and withdrawals exceeding ₹10 lakh and multiple electronic fund transfers from single account to many accounts to the tax authorities. They will also keep a close watch on transactions in accounts related to real estate developers and petrol pump dealers, among others.

As per the ‘action points’ for banks for the State poll, which is scheduled on October 21, the State-Level Bankers’ Committee has advised them to check anti-money laundering (AML) alerts properly and report the same to the Financial Intelligence Unit (FIU) for suspected election-related cash movements.

The committee has asked banks to monitor cash movement from currency chests to branches and ATMs and vice-versa, and ensure that all cash remittance parties are in possession of identity cards and authority letters to remit cash issued by the bank.

In the case of non-production of requisite receipts/ documentary proof for carrying/ remitting cash, the committee warned that cash will be permanently seized by the authorised officials of the government (State election commission officials/ police).

Banks branches are required to maintain a record of walk-in customers depositing more than ₹50,000 in cash in other customers’ accounts.

The committee said the rationality of cash demand by ATM vendors should be ensured and monitored. Further, banks have to be more vigilant on excessive demand for cash from branches and currency chests.

Dedicated savings bank/ current account of a candidate contesting elections should be opened with proper know-your-customer documents. Since such accounts are of politically exposed persons, enhanced due diligence must be exercised by banks. Overdraft in the case of accounts of such candidates should be avoided

Published on September 26, 2019
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