Ranchi:
Hours after the Enforcement Directorate served notice to a Union Bank manager in connection with the Madhu Koda scam, the bank has said that it is probing the cash deposits by firms.
Madhu Koda's front companies are said to have deposited Rs 640 crore between November 2006 and December 2008.
As per Union Bank, the primary probe shows that firms did engage in bullion trade.
"Cash deposits are related to the bullion trade," the bank said.
The bank has also said that cash deposits for gold purchase is a trade practice, and that substantial quantity of gold has been purchased from them.
The bank is under scanner for failing to alert financial intelligence unit of these transactions.
The ED will ask a bank official to explain whether norms were followed before accepting such a huge deposit.
The ED will also ask the official whether he had informed higher authorities about the transaction.
RBI rules mandates banks should verify the identity of depositor and source of funds.
Madhu Koda's front companies are said to have deposited Rs 640 crore between November 2006 and December 2008.
As per Union Bank, the primary probe shows that firms did engage in bullion trade.
"Cash deposits are related to the bullion trade," the bank said.
The bank has also said that cash deposits for gold purchase is a trade practice, and that substantial quantity of gold has been purchased from them.
The bank is under scanner for failing to alert financial intelligence unit of these transactions.
The ED will ask a bank official to explain whether norms were followed before accepting such a huge deposit.
The ED will also ask the official whether he had informed higher authorities about the transaction.
RBI rules mandates banks should verify the identity of depositor and source of funds.
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