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After Axis Bank, Kotak Mahindra under I-T scanner for suspicious accounts

business Updated: Dec 23, 2016 14:46 IST
Beena Parmar
Axis Bank

Men stand in queue with old 500 Rs notes in front of the RBI office in Kolkata after demonetisation. (Subhankar Chakraborty/HT PHOTO)

After Axis Bank, Kotak Mahindra Bank came under the Income Tax (I-T) lens with two suspicious accounts reported on Friday.

According to reports, fake accounts worth Rs 70 crore were found in their Kasturba Gandhi Marg branch in New Delhi. The accounts were in the names of Ramesh Chand and Raj Kumar.

However, Kotak Mahindra Bank has said that it raised the issue with the Financial Intelligence Unit (FIU) of the finance ministry regarding the two accounts.

Confirming the visit of the I-T department to its branch, Rohit Rao, Kotak Mahindra Bank’s spokesperson, said, “It is on our observation of two suspicious accounts that we reported to the FIU and basis that the I-T department visited the KG Marg branch to investigate two of its customers and had questioned the branch manager…

“No KYC deficiencies were noted in these two customers and no adverse report has been submitted to the Bank so far.”

He added, “The Bank confirms that it has a robust system of regularly and proactively filing necessary reports with the FIU for all large transactions, including these accounts.”

These regulatory violations at banks are coming to the fore after Prime Minister Narendra Modi in a suprise move demonetised Rs 500 and Rs 1000 notes on November 8.