whether another bank has seen this or not is not really germane to your situation - you are seeing it, and are choosing to keep the account open because of other aspects of the account outside of the kite transaction. you will now need to spend more time monitoring the account to ensure the bank does not lose money in the kite. and really, for the $600 example you provided, is the extra effort worth it? are you saying that if the client doesn't have a bank account with you they can't pay their loans? that is a strange stance to take when you've identified a client is intentionally doing something illegal.
i have a loan from another bank where i have no accounts, i have no issues paying that loan every month. your client can be exited from your bank and still make loan payments, happens all over.
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