Malappuram Cooperative Bank refutes charge of laundering

Malappuram: Malappuram District Cooperative Bank (MDCB) authorities have ruled out reports that the bank allegedly laundered blackmoney worth Rs 266 crore.  They have clarified that all the branches of MDCB have followed KYC norms for deposits. The reports of the alleged money laundering came after a surprise CBI raid on Wednesday. The CBI team has asked the bank to produce documents supporting the deposit of Rs 169 crore which was found to be deposited between November 10 and 14.

The bank has clarified that the amount was deposited by 54 branches and 296 co-operative societies including 140 co-operative banks which are functioning under MDCB. The branches deposited a total of Rs 84 crore and societies deposited defunct currency worth Rs 85 crore in the bank during the five days after the demonetisation was declared. Prior to the demonetisation, the bank had Rs 97 crore as opening balance which was deposited by the branches.