KODA SCAM FORCES BANKS TO TIGHTEN CASH NORMS

The recent case of Union Bank of India caught in the crossfire in Madhu Koda dealings, has put banks on high alert and most of the banks were looking to tighten their scrutiny of transactions, especially those involving large cash movement.
RBI asked banks to furnish Suspicious Transaction Report (STR) to Financial Intelligence Unit within seven days of arriving at a conclusion that a cash or non-cash "transaction, including attempted transaction, or a series of transaction integrally connected are of suspicious nature." Banks are also bound to report any transaction of Rs.10 lakh and above to the Financial Intelligence Unit.
Source: http://www.business-standard.com/india/news/koda-scam-forces-banks-to-tighten-cash-norms/377207/