RBI says private banks are not involved in Money laundering case

Rejecting the Cobrapost allegations on money laundering scam by three major banks – ICICI bank, HDFC Bank and Axis Bank – in the country, the RBI on Thursday has said that these banks are not involved in any scam and there were no irregularities conducted by these Banks.

“Allegations do not mean flouting norms. There is not a single transaction which has taken place. KYC violations will happen in any system. These are all transactional issues and have nothing to do with money laundering,” RBI Deputy Governor KC Chakrabarty told reporters in New Delhi.

“What we are saying is that when multiple regulators are concerned, when banks are selling other products, there may be some area where you need to strengthen, we will definitely examine that,” Mr. Chakrabarty added.

A sting operation conducted by online independent news portal Cobrapost claimed last week that three major private banks in India are involved in money-laundering practices.

“You don’t need a sting operation to show that in this country, people have black money. Some black money remains in bank accounts, for that do you require to have a sting operation?” “We don’t make it as a systemic issue,” he said.

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