The government has barred cooperative banks from accepting deposits Pradhan Mantri Garib Kalyan Deposit Scheme."It is clarified that co-operative banks are not authorised banks to accept deposits under PMGKDS, 2016," a finance ministry statement said on Friday.The deposit scheme is a part of the new income disclosure scheme under which a declarant has to deposit 25% of the declared undisclosed income in an authorised bank as notified by the government.The move comes following reports of some cooperatives not following specified know your customer norms and aiding laundering post-demonetisation, announced on November 8 that cancelled the legal tender status of Rs 500 and Rs 1000 notes. A number of cooperatives have come under the scanner of the income tax authorities and the enforcement directorate for helping their customers launder money.The authorised banks have to electronically furnish the details of deposit to the Revenue Department on the next working day to enable information verification of the deposit before accepting the declaration under the PMGKY Full confidentiality of the data would be ensured by the RBI and authorised banks.The amendment to the notification comes after the I-T department spotted irregularities in deposits of cooperative banks following demonetisation The the I-T department's investigation revealed that deposits in the books of certain cooperative banks were in excess of the physical holding of the now-defunct 500 and Rs 1,000 rupees currency notes.Initially cooperative banks were allowed to take deposits of old currency notes and as per estimates, about Rs 16,000 crore was deposited. But six days into demonetisation, the RBI barred these banks from exchanging old currency notes or accepting deposits.After the shock demonetisation of 500 and 1,000 rupee notes on November 8, the government had asked holders of such currency bills to deposit them in bank accounts by December 30. An estimated Rs 15.44 lakh crore worth such high denomination notes were in circulation.While the RBI has not made it public the exact amount of junked notes that were deposited, there are reports that close to Rs 15 lakh crore has already come back.The tax department, in order to crack down on money laundering, has asked banks to report deposits in any account aggregating Rs 10 lakh in a year, as well as cash payments of Rs 1 lakh or more on credit card bills.Rs 10 lakh in a year, as well as cash payments of Rs 1 lakh or more on credit card bills.Also banks have been asked to furnish data about deposits exceeding Rs 2.5 lakh made during November 9-December 30 period. They have also asked banks to collect PAN details of all account holders, except in case of Jan Dhan accounts.Also it has come to the notice of the government that an estimated Rs 3-4 lakh crore of tax-evaded income could have been deposited during 50-day window that ended on December 30.After in-depth analysis, these reports have been disseminated to Income Tax Department, the Enforcement Directorate (ED) and other Law Enforcement Agencies.Starting from November 8, 2016 various reports were called for from the banks based on different threshold of cash deposits made by different categories of persons. The reports were collated and analysed based on intelligence which has been available in the government data bases.Also, the I-T Department and ED have been provided with the details of cash deposits of more than Rs 16,000 crore in different accounts of various kinds of Cooperative banks.