IT raids: credibility of banks in question

The move of demonetisation which was largely done to address black money hoarders through banking means has somehow not achieved its target. The banks which are supposed to act as custodians of deposits and a means through which demonetisation would be executed are acting against the move.

On December 15, income tax department raided Axis Bank branch in Noida. Twenty fake accounts with deposits amounting to as much as Rs 60 crore were uncovered during an I-T department raid at an Axis Bank branch in Noida. These accounts were opened in the name of low income workers and labourers.

According to certain sections of media, the accounts were noticed by the I-T department when a jeweller in Noida sold gold worth Rs 600 crores after the November 8 demonetisation announcement, and deposited the money he got at the Noida branch.

In another development, Bank of Maharashtra has also been raided by the IT department. A huge stash of uncounted cash in Rs 2000 and Rs 100 banknotes was seized from multiple lockers held by an American oilfield equipment supplier at the state-owned Bank of Maharashtra's Parvati branch.