The Reserve Bank of India has initiated the process of carrying out comprehensive scrutinies covering both, Head Office and branches of three private sector banks, namely, ICICI Bank, HDFC Bank and Axis Bank. Apart from this, the Reserve Bank has also undertaken a thematic study in respect of banks that are active in selling gold coins / wealth management products to examine whether there are systemic issues and to plug deficiencies and legal loop-holes, if any.  

The scrutinies have been initiated after an online media firm called Cobrapost.com, on the basis of its sting operations across some branches of these banks alleged money laundering and violation of several provisions of the Reserve Bank of India Regulations, Foreign Exchange Management Act guidelines, Prevention of Money Laundering Act (PMLA), etc. The media firm had uploaded some videos on the internet relating to these banks as well as ICICI Prudential Life Insurance and HDFC Life Insurance.

The final reports on all the three banks will be completed by March 31, 2013 and thereafter further course of action as necessary will be initiated.

Alpana Killawala

Chief General Manager

Press Release : 2012-2013/1561

KYC/AML compliance probes prompt scrutiny of three private banks and a thematic review of banks selling gold products. The Reserve Bank has commenced comprehensive inspections of Head Office and branch operations of three private banks to examine compliance with KYC/AML norms, foreign exchange controls and the Prevention of Money Laundering framework following media sting allegations; a thematic review of banks selling gold coins and wealth management products will assess systemic vulnerabilities, with final reports due by the prescribed deadline before further supervisory action.