Odisha private banks in Rourkela converting black money into white

ROURKELA,Nov18: A host of private banks in Rourkela city accused of channelizing demonetized currencies into life insurance and mutual fund investments, the drive to flush out black money may get derailed.

Banking industry sources informed that the process of investing unaccounted cash in banned currencies in connivance with private banks of the city started from Tuesday. But it set alarm bells ringing on Thursday when many persons with hefty cash in demonetized currencies rushed to SBI and other nationalized banks to convert them into other investments.

An SBI officer said the new-found modus operandi of diverting unaccounted banned currencies into safe investments includes making cash demand drafts (DDs) at private banks worth below `50,000 without mentioning Permanent Account Number (PAN) of the IT Department. The private banks are reportedly helping in diverting the demand drafts to a host of insurance and mutual fund investment companies linked to them, he added.

The city has above 20 branches of various private banks and at least 90 percent of them are allegedly involved in converting black money into white.

Regional Manager of SBI BB Das said some customers also came with same offers at a few SBI branches. But all 46 SBI branches across Rourkela city, Panposh and Bonai sub-divisions have been instructed not to entertain such offer.