Page 5 - BF Cover January 2021.cdr

BANK UPDATE

Banking

News

J&K Bank scam raids money of public servants as well as ADB to provide $300-mn
some private parties.
The Enforcement Directorate conducted loan for primary health
multiple raids in Kashmir in connection Certain bank officials, in connivance
with a money laundering probe linked to with these public servants, deliberately care
alleged suspicious transactions in the J&K omitted to raise the alerts as required The Asian Development Bank said it
Bank. The central probe agency covered under anti-money laundering norms, has approved USD 300 million (about
a total of seven locations-- six in Srinagar the ED said quoting the CID FIR. Rs 2,200 crore) loan to strengthen and
and one in Anantnag district-- as part of The central probe agency said its probe improve access to comprehensive
the searches conducted under the "so far has revealed that the primary health care in urban areas in
Prevention of Money Laundering Act transactions in many of these bank India.The program will benefit an
(PMLA). accounts maintained with J&K Bank estimated 256 million urban residents.
The ED said it raided Mohd Ibrahim were not genuine and these accounts The onset of the coronavirus disease
Dar, Murtaza Enterprises, Azad Agro were utilised for the purpose of (COVID-19) pandemic has put pressure
Traders, M&M Cottage Industries and laundering." and revealed weaknesses in India's
Mohd Sultan Teli who are "involved" in health care system, said the Manila-
the hospitality and agro-based SBI will prefer co-origination headquartered multilateral lending
industries, civil construction and real models: Chairman agency in a release.
estate businesses.
SBI will prefer the co-origination model In response, the government launched
"The searches resulted in the recovery to cater to the financing needs of the Pradhan Mantri Atmanirbhar
of evidence of money laundering as the Swasth Bharat Yojana (PM-ASBY) to
MSMEs and collaboration with fintechs
bank accounts have been found to be
is a good idea as it helps in assessing strengthen public health systems and
used for routing suspicious
the risk profile of the borrower in a respond to future pandemics and other
transactions," it said.
better manner, its chairman Dinesh emergencies, it noted.
The ED is probing the case after Kumar Khara said. ADB said the Strengthening
studying an earlier FIR filed by the CID Pointing out that the Micro, Small and Comprehensive Primary Health Care in
of the UT Police in Srinagar against Medium Enterprises (MSMEs) are Urban Areas Program will support the
officials of J&K Bank, unidentified constrained today in terms of cash Ayushman Bharat (the Healthy India
public servants, private persons and
flows, time gap in realising receivables, initiative) Health and Wellness Centres
others for suspicious transactions in
among others and also the level of (AB-HWC) and PM-ASBY to ensure
various bank accounts.
lenders' confidence in funding them, equitable access to quality
The CID FIR, the ED said, alleges that Khara said collaborating is a better comprehensive primary health care
bank accounts were used for routing model than lending directly to MSMEs. services in urban areas in 13 states.

BANKING FINANCE | JANUARY | 2021 | 5