From now onward all the Banks have to share the transaction details in a standard format. Because the revenue intelligence and central security agencies are looking seriously into money laundering and financial fraud cases. The banks were providing data in various file formats making it difficult for the agencies to process and analyse the information. The processing of multi-format data also results in wastage of manpower and time.
This step follows intelligence and probe agencies laying emphasis on a standardized format for sharing of information by the banks which also include transaction through cheques. First time the issue was raised by the CBI regarding format. According to CBI, it found that while investigating an offence, banks were providing information in different formats making probe rather difficult.
To recover with this issue a meeting was called by the Central Economic Intelligence Bureau and a commonly acceptable format was designed. During a recent meeting of the “working group on intelligence apparatus” headed by Revenue Secretary Hasmukh Adhia and attended by officials of intelligence and investigating agencies, a representative of RBI informed that Indian Banks Association (IBA) has indicated that banks will furnish information in respect of transactions like National Electronic Fund Transfer, Internet banking and intra bank transfer in the new format, the sources said.
The Revenue Secretary asked the RBI to prevail upon IBA so that details of cheque transactions may also be provided to law enforcement agencies in the prescribed format, they said. Intelligence agencies need information from banks to probe cases of black money, money laundering, disproportionate assets and banking frauds.
It makes a task easier for forensic analysis and will be both time and cost effective. Enforcement Directorate (ED) also emphasised that the details of cheque transaction should also be provided by the banks in the prescribed format, the sources said. A number of cases relating to bank frauds worth crore of rupees which are being probed by the central and state law enforcement agencies. Banks have reported 11,997 fraud cases during April and December last year.
So lets discuss some questions related to this article :
1. Name the organization which has designed the standard format for all the transaction report ?
2. Name the person who is the revenue secretary and headed a recent meeting of the “working group on intelligence apparatus ?
3. Expand the term IBA and CBI ?
Courtesy : Economic Times