NSI to probe black money invested in post office savings schemes


With the government tracing black money flowing even into small savings schemes, post offices offering these plans are also coming under the lens of probe agencies.

National Savings Institute, which is headquartered in the city, markets these schemes through post offices. It has been designated as the inspection agency to prevent money laundering via schemes like national savings certificate (NSC), post office bank accounts, recurring deposits or public provident fund (PPF).

These schemes are mainly targeted at the poor and middle class. However, there are reports of substantial amount of unaccounted wealth being parked in such plans too.

The government has inputs that since banks adopted the ‘know your client’ (KYC) norms, black money is being diverted to small savings schemes, with the hope that it can avoid the attention of sleuths. Unlike banks, post offices do not have a system of tallying accounts of various branches.
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