The Reserve Bank of India (RBI) on Friday said it has not given clean-chit to ICICI Bank, HDFC Bank and Axis Bank, which are accused of money-laundering and flouting know your customer (KYC) norms, and stated the probe against the three banks was still on.
“No we have not. And we are
saying that we are (going) to issue show-cause notices. So, the inquiry is still in progress,” said Subbarao when asked whether RBI had given clean chit to the three banks.
Subbarao, speaking at the customary post-policy media interaction, asserted that while money-laundering has not been observed in any of the banks, certain “specific transgressions” on the KYC front have been discovered.
“We have talked to those banks, called those CEOs for a meeting, told them about what the deficiencies are and they have gone back and implemented some of the systemic improvements,” said the governor, adding, RBI officials have also spoken with forensic auditors appointed by these banks.
Deputy governor K C Chakrabarty, who had in March given a near clean-chit to these banks saying there were no transactions, on Friday said show-cause notices will be sent not just to these three banks, but to all erring lenders.
“Whomsoever we find that there are mistakes, there are transgressions, violation of the thing, we will definitely issue show-cause notice and take appropriate action,” said Chakrabarty.