Press Esc to close
Sunday 26 March 2017
News updated at 12:28 PM IST

RBI starts scrutiny of three banks

New Delhi, Mar 18, 2013, PTI:

The Reserve Bank on Monday said it has started a comprehensive scrutiny of head offices and branches of ICICI Bank, HDFC Bank and Axis Bank, which are accused of money laundering and violating regulations like FEMA and KYC.

The scrutiny will be completed by March 31.

“The RBI has initiated the process of carrying out comprehensive scrutinies covering both, Head Office and branches of three private sector banks, namely, ICICI Bank, HDFC Bank and Axis Bank,” the central bank said in a statement.

“The final reports on all the three banks will be completed by March 31, 2013 and thereafter further course of action as necessary will be initiated,” it added.

The three private sector banks were accused of money laundering in a sting operation by online portal, Cobrapost.

“The scrutinies have been initiated after an online media firm on the basis of its sting operations across some branches of these banks alleged money laundering and violation of several provisions of the RBI Regulations,” RBI said.

It further said the allegations also pertain to violation of Foreign Exchange Management Act guidelines, Prevention of Money Laundering Act (PMLA), among others.

The media firm had uploaded some videos on the internet relating to these banks as well as ICICI Prudential Life Insurance and HDFC Life Insurance, RBI added.

Apart from this, the RBI has also undertaken a thematic study in respect of banks that are active in selling gold coins/wealth management products to examine whether there are systemic issues and to plug deficiencies and legal loop-holes, if any, the statement added.

Meanwhile, the three private sector banks, named in the sting operation, have started their own internal investigation. They have also suspended staff concerned pending probe.

Last week, Cobrapost had played the contents of a purported video recording of officials of
the private banks allegedly agreeing to receive unverified sums of cash and put them in their investment schemes.

Go to Top

Photo Gallery
A delegation of FIFA U-17 Football World Cup at DY Patil Stadium in Navi Mumbai on Saturday...

A delegation of FIFA U-17 Football World Cup at DY Patil Stadium in Navi Mumbai on Saturday...

Artists Kashmir perform at fifth Rashtriya Sanskriti Mahotsav (RSM) organized by North East Zone...

Artists Kashmir perform at fifth Rashtriya Sanskriti Mahotsav (RSM) organized by North East Zone...

President Donald Trump, flanked by Health and Human Services Secretary Tom Price...

President Donald Trump, flanked by Health and Human Services Secretary Tom Price...

New Mobile Medical Unit vehicle are launched by Karnataka Health and Family Welfare Department...

New Mobile Medical Unit vehicle are launched by Karnataka Health and Family Welfare Department...

Map of India with BJP symbol- Lotus, during the Panch Parmeshwar Sammelan for the MCD elections...

Map of India with BJP symbol- Lotus, during the Panch Parmeshwar Sammelan for the MCD elections...

Bollywood actor Shilpa Shetty during the launch of Saffola breakfast cereal, in Mumbai...

Bollywood actor Shilpa Shetty during the launch of Saffola breakfast cereal, in Mumbai...

A farmer from Tamil Nadu state climbs a tree in a bid to commit suicide, but was later coaxed down..

A farmer from Tamil Nadu state climbs a tree in a bid to commit suicide, but was later coaxed down..

Union Home Minister Rajnath Singh pinning stars on the shoulders of a cadet during passing out...

Union Home Minister Rajnath Singh pinning stars on the shoulders of a cadet during passing out...

Women with their faces painted to on the eve of 60th Earth Hour in Muradabad on Saturday...

Women with their faces painted to on the eve of 60th Earth Hour in Muradabad on Saturday...

Indian cricketers pose with series trophy before the start of last test match against Australia...

Indian cricketers pose with series trophy before the start of last test match against Australia...

Like us on Facebook

Copyright 2017, The Printers (Mysore) Private Ltd., 75, M.G Road, Post Box 5331, Bengaluru - 560001
Tel: +91 (80) 25880000 Fax No. +91 (80) 25880523