Srinagar, Feb 21: Jammu and Kashmir Bank is under intense scrutiny following revelations of widespread financial irregularities. High-level investigations have uncovered unlinked PAN accounts, diverted digital payments, and suspected proxy banking networks operating within routine transactions.
Two confidential 2025 enquiry reports reportedly highlight serious gaps in KYC compliance and internal monitoring, showing that nearly 1.58 lakh accounts operated without mandatory PAN linkage, despite thousands of account holders having valid PAN cards. Between FY 2021-22 and 2023-24, these accounts recorded credits totaling nearly ₹4.88 lakh crore, raising concerns over potential tax evasion and undisclosed income.
Investigators identified 505 high-value accounts functioning solely on Form-60 declarations, each transacting over ₹50 lakh annually, with total inflows and outflows exceeding ₹2,200 crore. Complex linkages across shared PANs, email IDs, national IDs, and thousands of counterparties suggested mirror transactions and rapid fund rotation to obscure ownership.
Among notable findings was the use of 29 student savings accounts linked to 31 petrol stations, through which over ₹27 crore was routed, pointing to possible proxy financial channels. Digital payments via M-Pay platforms were reportedly credited to personal employee accounts, with portions diverted to third parties without formal invoices.
Reports shared with enforcement agencies, including the Reserve Bank of India, warn that discrepancies between declared income and bank credits indicate under-reported financial activity. Investigators have recommended stricter PAN enforcement, closer monitoring of Form-60 accounts, oversight of UPI fund flows, and coordination with the National Payments Corporation of India.
The emerging picture points not only to compliance lapses but also to a shadow economy operating quietly through formal banking channels, now facing deeper scrutiny.
