Nation Current Affairs 09 Dec 2016 Kurnool: Proddatur t ...

Kurnool: Proddatur town's commercial banks go under scanner

Published Dec 9, 2016, 3:41 am IST
Updated Dec 9, 2016, 7:12 am IST
Manager of a private bank said to be suspended.
Proddatur in Kadapa district has become a Mecca of money exchange.
 Proddatur in Kadapa district has become a Mecca of money exchange.

Kurnool: Commercial banks in Proddatur town in Kadapa district have come under severe flak for their involvement in exchanging high-value currency without verifying KYC norms strictly.

Particularly, private bank branches were said to be involved in facilitating the transactions running into tens of crores of rupees post November 8. The manager of a private bank is said to have been suspended for his ‘prima facie’ role in the money exchange activity without proper proof.


The department of banking supervision of the Reserve Bank of India has been apprised of the matter and is investigating it, according to informed sources.
When RBI’s regional director R. Subramanian, was not available for comment, his secretary said he was in a meeting.

Proddatur in Kadapa district has become a Mecca of money exchange. Perhaps, no other town in Andhra Pradesh has many branches as Proddatur. It is home to international, national and local bank branches.

Thriving gold trade has brought these many bank branches to this otherwise sleepy town. And this has come handy for people with black money people to exchange it without any hassle. Consider this: a well known gold merchant with hundreds of crores of property in Proddatur also owns sizeable real estate.

He has leased out office space to some private bank branches. It was said that on the day when the demonetisation was announced, he had exchanged a few crores of old currency within the precincts of his property. Ditto is the case with a well-known doctor in the town. He had also let out office space for two commercial banks in his estate.

Between November 9 and November 12, for four days, because of heavy rush, nationalised banks had collected identity proofs like Aadhaar card , driving licence, etc without insisting on signature of the person tendering it for cash withdrawal.

These unsigned ID proofs have been sourced from nationalised banks and agents making multiple xerox copies. Such xerox copies were used to deposit maximum money in others accounts. The bankers compromised on verifying the strict KYC norms and accepted deposits.  Thus black money has entered the banking system. A complaint has been sent to the RBI that two private banks located in Gandhi Nagar area were facilitating currency exchange in huge amounts.

Currency prank lands four in jail
A botched attempt to make a quick gain by presenting a `2,000 currency note by four landed them in a jail. A highly spirited gang of four at Pedda Nelatur village under Kodumur police station limits on Thursday presented xerox copies of Rs 2,000 currency note and paid a price for it.

The CI of Kodmur police station Srinivasulu said, Shaik Subhan, Khaza and Golla Goud hatched a plan to buy liquor at a belt shop run by one Venkateswarlu of Pedda Nelaturu with a xeroxed currency note of Rs 2000. As the idea came to their mind, Shaik Subhan  got done a colour xerox of Rs 2,000 and handed it over to Venkateswarlu, a belt shop owner.

Venkateswarlu, who could not identify the xerox note took and supplied with the required liquor. Later, he came to know that it was not original but a xeroxed one. He immediately consulted Shaik Subhan and demanded original note. The news spread in the village and later reached to the Kodmur police, who took the four into custody.

Kodmur police rushed to Pedda Nelatur village and took the four persons into custody. Circle Inspector Srinivasulu said, we are still enquiring into the issue, whether fake notes are there or it is just for fun.