Action both at systemic and individual bank levels, says deputy governor
Reserve Bank of India deputy governor HR Khan said on Thursday the banking regulator will soon take action against some private banks that face allegations of money laundering.
Declining to disclose details, Khan said on the sidelines of an event organised by the National Housing Bank, ?Actions are being initiated both at the system level and the individual bank level.?
The online portal Cobrapost had named HDFC Bank, ICICI Bank and Axis Bank following a sting operation, and had alleged that some officials of these banks had offered to launder unaccounted wealth.
RBI governor D Subbarao had said earlier that though the systems are ?largely safe?, there was a need for corrective action based on the findings of the probe.
On the topic of external commercial borrowings (ECBs) for affordable housing, Khan said RBI would continue with the scheme, which has an overall ECB cap of $1 billion. He added the Reserve Bank of India will adopt ?a cautious approach as the housing sector does not generate foreign exchange.?
?So, we have to see that we have really viable projects and we don?t get into difficulty. We have to balance the requirement as well as the currency mismatches. We have to take a balanced approach,? he added.
Sting fallout
* Online portal Cobrapost had named HDFC Bank, ICICI Bank and Axis Bank in a sting operation and alleged that some officials of these banks had offered to launder unaccounted wealth
* RBI governor D Subbarao had earlier said though the systems are ?largely safe?, there was a need for corrective action based on the findings of the probe
* On external commercial borrowings for affordable housing, Khan said RBI would continue with the scheme, which has an ECB cap of $1 bn