RBI initiates inquiry into money laundering cases by banks

Taking a strong note on the money laundering case by few banks, RBI deputy governor Rama Subramaniam Gandhi said that RBI has initiated an inquiry in the cases of money laundering by various banks.

The deputy governor also said that the apex bank is keeping an eye on various transaction of banks. 'In an operation of this size (demonetisation), there are always elements who would've behaved otherwise than what is expected,we're keeping vigil,' said R Gandhi.

The deputy governor has also added that RBI has asked banks to keep a record of new currency given to them.'There have been media reports about some of transactions noticed in various bank branches, alleged involvement of bank staff. Would like to mention that from the beginning of this process,bank employees have made efforts, majority have won appreciation,' said deputy governor of RBI R Gandhi.

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Recently, Income Tax officers raided Axis Bank branch in Chandni Chowk in Delhi. A total of 44 fake accounts have been identified in the bank branch. Income Tax officers found cash deposits worth Rs 100 crore in fake accounts.

Banks did not follow KYC norms in these accounts. Bank officials are being questioned.