Financial Intelligence Unit (FIU) data shows deposits of Rs 2,000 crore in 72,000 dormant accounts from November 8-25
About 72,000 dormant accounts in public and private banks came to life in the first 17 days of demonetization with more than Rs 2,000 crore cash deposited in them. Topping the list was India's largest public sector bank State Bank of India (SBI) with deposits of Rs 586 crore, reveals official data.
The average deposit in the 72,000 accounts is Rs 2.79 lakh, a notch above the Rs 2.5 lakh limit specified by the government, according to the Financial Intelligence Unit, a specialised agency that works under the Finance ministry.
Tasked with monitoring suspicious bank transactions, FIU had closely scrutinised accounts in the period between November 8-25 and found that dead accounts—those that had not been active for the last two years—had suddenly sprung to life after the government withdrew high currency notes.
Almost every bank, public and private, had accepted such deposits, reveals the data accessed by DNA.
While SBI heads the list, Punjab National Bank (PNB) follows second with Rs 230 crore being accepted in dormant accounts. UCO Bank (Rs 154 crore), Bank of Baroda (Rs 116 crore) and Bank of India (Rs 105 crore) are the others in the top five. Amongst the private banks, ICICI is at the top with Rs 51 crore followed by Axis Bank (Rs 36 crore) and HDFC (Rs 9 crore).
The largest dormant deposit was found to be in Surat where one individual deposited Rs 3 crore in HDFC. Amongst the other stand-out transactions that have come to light is that of a garment trader depositing Rs 1 crore without quoting a PAN number in the Tirupur branch of PNB.
The main intent behind declaring an account dormant or dead is to reduce the risk of frauds. Segregating these accounts leads to bank staff getting alerted to the risks involved and the due diligence needed.
But after demonetization, some people are allegedly depositing unexplained cash in these zombie accounts, an expert explained.
Recently, in a high profile meeting of tax officials, the Central Board of Direct Taxes (CBDT) took note of 500 suspicious accounts where more than Rs 15 lakh cash was deposited.
The government has started analysing where the higher-than-expected deposits came from and how they got into the system. Banks and their staff could face intense scrutiny, and possible penalties if irregularities are found, an official said.
The banks did not respond to emails and repeated messages.
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