RBI initiates Scrutiny of Three Banks for Alleged KYC/AML Guidelines

The Reserve Bank of India 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. Apart from this, the Reserve Bank 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 scrutinies have been initiated after an online media firm called Cobrapost.com, on the basis of its sting operations across some branches of these banks alleged money laundering and violation of several provisions of the Reserve Bank of India Regulations, Foreign Exchange Management Act guidelines, Prevention of Money Laundering Act (PMLA), etc. 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.

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.

Alpana Killawala

Chief General Manager

Press Release : 2012-2013/1561