The Reserve Bank has said that it will take action against some more banks for alleged violation of regulatory norms following an expose by a news portal."We have taken action against specific banks. Action against some more specific banks is in process. We will take a final view on that," Governor Duvvuri Subbarao told reporters after the board meeting in Chennai.
"And after this specific action is completed, we have to take a systemic view about how to rectify some of the deficiencies that we have identified," he said. "I don't think, it is a problem with the laws of the country. I think, it is a problem, with enforcing the rules that are already on the rule book. So, the first thing we must be doing is to ensure that the regulations that are there on the book are implemented."
Last month, the RBI slapped Rs 5 crore on Axis Bank, Rs 4.5 crore on HDFC Bank and Rs 1 crore on ICICI Bank after enquiring into the charges levelled by an news portal Cobrapost in February that some officials of these banks offered to facilitate illegal money transactions.The penalty followed scrutiny carried out by RBI of books of accounts, internal control, compliance systems and processes of these three banks at their corporate offices and some branches during March/April 2013.
In its second round of expose, the portal in May accused 23 public and private sector banks and insurance companies of "running a nation-wide money laundering racket."Those named in the expose include SBI, LIC, Punjab National Bank, Bank of Baroda, Canara Bank, Yes Bank, Reliance Life, Tata AIA, Indian Bank, Indian Overseas Bank, IDBI Bank, Oriental Bank of Commerce, Dena Bank, Corporation Bank, Allahabad Bank, Central Bank of India, Dhanlaxmi Bank, Federal Bank, DCB Bank and Birla Sun Life.Cobrapost alleged that the financial sector entities offered to open bank accounts and lockers for customers without following KYC norms, convert their black money into white and obtain fictitious PAN numbers. On fake notes, deputy governor KC Chakrabarty said counterfeit currency situation has not deteriorated so far but remains a problem.
"If you see the Governor's policy statement, we are encouraging the banks to identify and help us to detect. Partly, this problem is a national problem. We are also working with the security agencies to stop this menace," Chakrabarty said."But what do we encourage and what we request the media that you must save the people. Whenever they are in possession of a fake note, they must surrender it to the nearest bank. We will be able to tackle that problem, much more in a competent matter," he added.
