Some truth in Cobrapost expose

Written by Press Trust of India | Ahmedabad | Updated: May 31 2013, 06:09am hrs
There is some truth in Cobrapost allegations of wrong doings by banks and RBI has issued notices to their managements, RBI governor D Subbarao said.

We have done study of those banks, investigated them ... We have done a larger study of those banks and we have issued notices to the bank managements and shall take appropriate actions, Subbarao said at a question answer session during the R L Sanghvi Endowment AMA Annual Lecture on Economics, in Ahmedabad.

RBI had launched the investigation following the expose which showed some bankers giving suggestions to customers on ways to bypass regulatory norms.

We will assess what went wrong, how much went wrong. We shall take action, he said.

However, Subbarao added banks cannot be held responsible for money laundering as it is not their job to find out the source of the money being deposited.

Of course, if there are some suspicious transactions, if there are cash transactions there are norms and systems to report. They are suppose to report...and if they dont we shall take action against the banks, he said.