16 January 2014
ii) The banks are required to keep a close watch of cash withdrawals and deposits for Rs.10 lakhs and above in deposit, cash credit or overdraft accounts and keep record of details of these large cash transactions in a separate register. (Circular DBOD.BP.BC.57/21.01.001/95 dated May 4,1995).
(iii) Branches of banks are required to report all cash deposits and withdrawals of Rs.10 lakhs and above as well as transactions of suspicious nature with full details in fortnightly statements to their controlling offices. Besides, controlling offices are also required to apprise their Head offices regarding transactions of suspicious nature. (Circular DBOD.BP.BC.101 /21.01.001/95 dated September 20, 1995). Early computerization of branch reporting will facilitate prompt generation of such reports.
sir, considering above r.b.i.circular,i need guidelines. i have saving's account with a multi state schedule co.op.bank since 25 years. in last week i went to bank to cash deposit of rs.3,00,000(three lacs) in my saving's account.my banker's forced me to submit purpose letter in which i have to state that to whom i issued cheque & for which purpose i give cheque to that party( i.e.for loan,business transaction). secondly my banker's forced me that i have to giving in writingto my banker's that i have that type of business/profession in which often cash transaction taken place.so in other words i have to state my cash flow. sir,question is that as per r.b.i.circular i have no need to submit purpose letter as i am cash deposing rs.3,00,000 which is less than rs.10 lacks. pl.give me guideline for my banker's attitude.may i have any right to oppose my banker's demand? thank you.
17 January 2014
I have so many such problems. I will suggest you to take a copy of circular with you and discuss with them. If still they don't accept it. Ask them to give it in writing.
CAclubindia
