The Reserve Bank of India, which had stepped in after investigative website Cobrapost alleged few executives at private sector lenders Axis Bank, HDFC and ICICI Bank have been indulging in money laundering activities, has found violation of know your customer (KYC) norms by these banks.
According to news channel CNBC-TV18, the central bank report has found non-compliance of KYC norms, dummy PANs, unauthorised gold sale and irregular staff trips.
The news channel also reported that the central bank investigation reveals cash transactions by these banks from unknown sources in non-resident accounts while hundreds of customers have been found with multiple IDs. The report also indicates that banks have accepted cash over Rs 5,000 without a PAN number.
Officials of these banks refused to comment on the issue.