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NEWS: India urges banks to tighten checks over ‘high risk’ fund flows from Pakistan

A man walks past the Reserve Bank of India (RBI) logo outside its headquarters in Mumbai, India, June 6, 2025. REUTERS/Francis Mascarenhas/File Photo

By Nikunj Ohri

THE Reserve Bank of India (RBI) has asked the country’s lenders to increase scrutiny over funds flowing indirectly from Pakistan, according to a letter seen by Reuters that cited a “high risk” of such money being used to buy arms.

Direct flows of funds from Pakistan to India are largely prohibited, with every transaction requiring central bank’s approval.

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