RBI denies rumours on cancellation of bank licence of Axis Bank

RBI has cleared the air over reports that RBI is mulling to cancel bank licence of Axis Bank.

RBI in its press release on Monday said, "The Reserve Bank of India on Monday clarified that it has not initiated any action to cancel the banking licence of Axis Bank in the wake of certain allegations about some serious irregularities in transactions relating to deposit/exchange of Specified Bank Notes in a few branches of the bank. The clarification comes in the background of rumours in a segment of the media that the bank was likely to lose its banking licence." 

On November 25, The Income Tax department raided the Kashmere Gate branch of Axis Bank in Delhi. The raids were conducted after two people were held with Rs 3.5 crore new notes. The bank managers reportedly took the commission in gold. In order to curb black money, the government on November 8 announced that high currency denominations of Rs 500 and Rs 1,000 will no longer be legal tender. Holders of the currency have the option to deposit them in bank accounts till December 30. However, several reports have surfaced where unscrupulous elements are using various means to convert their black money into white.

Also Read:  Delhi: I-T officers find 44 fake accounts with deposits worth over Rs 100 crore in Axis bank branch

On December 5, managers from Axis Bank were arrested by the Enforcement Directorate in connection with money laundering probe. Both the officials were booked for alleged committing irregularities in the conversion of old currency and supply of new notes leading to blackmoney generation.