The accounts received multiple RTGS/NEFT inward transactions and several such remittances were sent out of these accounts as well. Several accounts were abused to send money abroad in the form of advance import remittances. Despite the disproportionate activity in such accounts, the monitoring mechanism of banks fell short of our expectations.
I wonder why banks are not able to devise fool proof technology-based solutions to identify such transgressions. As you may be aware, RBI had to impose penalties on 13 banks for non-compliance with extant KYC/AML instructions including failure to categorise their customers in line with their risk profiles. 11. Another area that comes to my mind is the process for system-based identification of NPAs.