Nedbank is cutting ties with the Bank of Baroda. This emerged in an affidavit Bank of Baroda CEO Manoj Jha filed at the High Court in Pretoria. Jha said this would make it "impossible" to provide banking facilities to any of its customers. This includes the 20 Gupta-linked companies, which launched an urgent court application on February 16 to stop Baroda from shutting its South African operations. Jha disclosed in his answering affidavit that Nedbank gave notice at the end of January that it intended ending its relationship with Baroda within three months. Baroda will then not have banking facilities with Nedbank, on which it relies to provide banking services to its own clients. Baroda has had a correspondent banking relationship with Nedbank in SA. That meant Nedbank cleared Baroda’s transactions. Clearing banks deal directly with each other via control accounts. The Reserve Bank administers these control accounts. A nonclearing bank is not directly involved in processing transac...

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