The Financial Intelligence Unit (FIU) is undertaking a statistical analysis of the average daily deposit and withdrawal transactions at bank branches between August 1 and November 8, 2016, and that during the 50-day demonetisation period to zero-in on cases of conversion of tax-evaded (black) money into legitimate (white) money.
This exercise is aimed at enabling the revenue authorities — Income Tax and Enforcement Directorate — to go after those who have deposited tax-evaded money either into their own account or into the accounts of those who acted as money mules.
Bankers say the FIU, which is the national agency responsible for receiving, processing, analysing and disseminating information relating to suspect financial transactions, wants to match the deposit/withdrawal activity in accounts in the three-odd months prior to demonetisation with that during the demonetisation period and link this information to the profile of the customers to arrive at appropriate conclusions.
If the activity is not legitimate, the revenue authorities will move in to take action.
Also on the FIU’s radar are dormant accounts which got reactivated (deposits and withdrawals from these accounts) during the demonetisation period (November 9 to December 30, 2016) and loan repayments made in de-notified ₹500 and ₹1,000 bank notes. The demonetisation period saw a surge in deposits amounting to about ₹4.20 lakh crore. A senior official of a public sector bank observed that after the front-office (branch) staff of banks strained every nerve to serve the public during the 50-day demonetisation period, it is now the turn of the back-office staff to do the same to meet the post-demonetisation information demand of authorities, especially the FIU.
A senior official of an urban co-operative bank said: “After the demonetisation exercise ended, we have been receiving demands for transaction-related information almost every day.
“A few days back, we received an urgent message from FIU at 5.30 pm seeking account-related information by 6.30 pm. With such tight deadlines, there is a high possibility of reporting mistakes happening.”