Reserve Bank Collecting info on money laundering allegations: Urjit Patel

Reserve Bank of India (RBI) is collecting information on money laundering allegations – Urjit Patel.

The Reserve Bank of India (RBI)Urjit_Patel_Deputy_Governor_RBI is collecting information regarding the alleged acts of money laundering by the country’s three largest private sector banks. The country’s three largest private banks were on March 14, 2013 (today) accused of indulging in money laundering both within and outside with an online portal claiming that a sting operation conducted by it has revealed a scam.

“The RBI is in touch with the banks. At the moment, that is what I can say… We are collecting information,” deputy governor of Reserve Bank of India Mr. Urijit Patel said on the sidelines of annual commencement day lecture of Exim Bank.

When asked if any of the three banks in question — ICICI Bank, Axis Bank or HDFC Bank — have been issued a show-cause notice in the aftermath of the expose, Patel said “No”.

Reacting to it, the Finance Minister P Chidambaram said the Government will not jump to any conclusions in the matter, while the Central Board of Direct Tax (CBDT) said it has taken cognisance of the sting operation and has begun a probe into it.

The portal Cobrapost played the contents of purported video recording of officials of HDFC, ICICI and Axis bank allegedly agreeing to receive unverified sums of cash and put them in their investment schemes and benami accounts in violation of anti-money laundering laws.

The footage shows a number of senior executives of the three banks verbally agreeing to take huge amounts of cash from the undercover reporter and putting them into a variety of long-term investment plans so that the black money ultimately is converted into white.

However, no account was opened nor any cash deposited in these banks.

All the three banks claimed they conduct their business in compliance with legal and regulatory requirements of the highest standards but said they will investigate the charges.

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