Cobrapost an online investigating portal in its recent sting operation, called 'Operation Red Spider', trapped the executives of India's Three largest private banks while verbally agreeing to convert huge amounts of money from black to white through various investment plans.
Considering the the above issue the Reserve Bank Deputy Governor H R Khan on Thursday said the central bank is initiating action against ICICI Bank, HDFC Bank and Axis Bank in connection with allegations of money laundering by Cobrapost.
"Actions are on the way. Scrutiny has been done, actions is being taken both in respect of systemic level and at the individual banks," he said when asked if RBI has completed investigations on Cobrapost exposes. "I will not be able to tell you the details but actions are being taken. Actions are being initiated both at the system level and the individual bank level," he said on the sidelines of an event organised by National Housing Bank here. Asked when RBI would release the investigation report, he said, "I can't give you time frame but it will be out soon."
Immediately after the exposes, Reserve Bank Governor D Subbarao had said some corrective steps will be taken to strengthen the banking system. "I believe systems are largely safe. However, there is a need for some corrective action and based on the findings of the investigation, we will take corrective action" he had said. "I cannot at this time say or make broad, sweeping statement that there are no transactions taking place at all," the Governor had said.
Soon after the sting operation, ICICI Bank suspended 18 employees while HDFC Bank has initiated an audit inquiry besides suspending 20 staff. Axis Bank has also formed a senior-level committee to oversee an internal inquiry and asked 16 employees concerned to report to the administrative office.
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