Press Esc to close
Monday 25 May 2015
News updated at 12:48 PM IST
Weather
Max: 33.3°C
Min : 22.5°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
Mumbai India and CSK Cricketers with IPL Trophy during photo session ahead of their IPL 2015...

Mumbai India and CSK Cricketers with IPL Trophy during photo session ahead of their IPL 2015...

Organically grown fruits and vegetables at ‘Pilikula Vasanthothsava’ at Pilikula in Mangaluru...

Organically grown fruits and vegetables at ‘Pilikula Vasanthothsava’ at Pilikula in Mangaluru...

Dr.Rajkumar's Statue Unveil at Gayathri (Rajaji) Nagar...

Dr.Rajkumar's Statue Unveil at Gayathri (Rajaji) Nagar...

An Indian man pours water on his face during a hot summer day in Hyderabad...

An Indian man pours water on his face during a hot summer day in Hyderabad...

A picture of late Pope's John Paul II is seen inside the Force India's Formula One car...

A picture of late Pope's John Paul II is seen inside the Force India's Formula One car...

Children seen carrying sand in cycle cart which collected from the road at Mysuru...

Children seen carrying sand in cycle cart which collected from the road at Mysuru...

A man shows a pair of turtles in Thane, Mumbai ...

A man shows a pair of turtles in Thane, Mumbai ...

A salesman helps a customer to select gold bangles at a jewelry showroom in Mumbai...

A salesman helps a customer to select gold bangles at a jewelry showroom in Mumbai...

A pair of Barbet bird sits on a tree in New Delhi on Sunday...

A pair of Barbet bird sits on a tree in New Delhi on Sunday...

People enjoying in a water park to beat the heat on a hot day in Bhopal on Sunday...

People enjoying in a water park to beat the heat on a hot day in Bhopal on Sunday...

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