Press Esc to close
Sunday 01 February 2015
News updated at 9:47 PM IST
Weather
Max: 28°C
Min : 17°C
In Bengaluru
Sunny day

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 machine cleaning pollution from River Ganga during the Magh Mela Festival in Allahabad...

A machine cleaning pollution from River Ganga during the Magh Mela Festival in Allahabad...

Farah Khan announces the Gautam Gulati as the winner of Bigg Boss Season 8...

Farah Khan announces the Gautam Gulati as the winner of Bigg Boss Season 8...

Devotees feed Siberian migratory birds after taking a holy dip in the River Ganges...

Devotees feed Siberian migratory birds after taking a holy dip in the River Ganges...

Hingis of Switzerland and Paes of India kiss their trophy at the Australian Open 2015...

Hingis of Switzerland and Paes of India kiss their trophy at the Australian Open 2015...

Hingis of Switzerland and Paes of India celebrate the winning movement of Australian Open 2015...

Hingis of Switzerland and Paes of India celebrate the winning movement of Australian Open 2015...

A senior traffic police officer stops a truck at Qazigund as Srinagar- Jammu National Highway...

A senior traffic police officer stops a truck at Qazigund as Srinagar- Jammu National Highway...

Jacqueline Fernandez during a promotional event in Jaipur on Sunday...

Jacqueline Fernandez during a promotional event in Jaipur on Sunday...

John Abraham takes selfie with Delhi Waveriders players during their HIL match...

John Abraham takes selfie with Delhi Waveriders players during their HIL match...

Madhuri Dixit Nene with husband Sriram Nene during the 60th Britannia Filmfare Awards...

Madhuri Dixit Nene with husband Sriram Nene during the 60th Britannia Filmfare Awards...

Sonam Kapoor during the 60th Britannia Filmfare Awards in Mumbai...

Sonam Kapoor during the 60th Britannia Filmfare Awards in Mumbai...

Copyright 2014, The Printers (Mysore) Private Ltd., 75, M.G Road, Post Box 5331, Bengaluru - 560001
Tel: +91 (80) 25880000 Fax No. +91 (80) 25880523