Banks asked to do central data check: RBI on money laundering

Updated: Dec 14, 2016, 09:17 IST | Agencies

With more and more instances of money laundering and fraudulent currency exchange surfacing

With more and more instances of money laundering and fraudulent currency exchange surfacing, RBI yesterday warned of stern action against wrongdoers and asked banks to carry out a thorough central data checking, while it suspended a "junior functionary" who is being investigated.

"We have issued elaborate instructions to all banks to do the central data checking and wherever they find any inconsistency, it should be pursued further through their internal audit mechanism," said deputy governor of RBI, S S Mundra, speaking to a select group of reporters. "Our supervisors are also carrying out similar exercise on various data points of banks and wherever any untoward kind of transactions or actions are noticed, due action would be pursued and due investigation would be carried out," he said. He denied the reports that RBI had issued show-cause notice to Axis Bank and was planning to cancel its banking licence following massive malpractices in currency exchange at many of itsbranches. Stating that many instances of money-laundering have come to the RBI's notice, he said already banks have taken action against the staff who were involved.

About the arrest of an RBI official in Bengaluru yesterday Mundra said, "Let me clarify it is a junior functionary of RBI and it was reported by the investigating agency that he was recorded to be present in a bank branch where this kind of transaction was happening. We have suspended the employee and have instituted investigation and due action will be taken once details are known.

Rs 12.44 lakh cr collected
"The old notes of Rs 500 and Rs 1,000, which have been returned to the Reserve Bank and the currency chest, amounted to Rs 12.44 trillion as of December 10," RBI Deputy Governor R Gandhi said.

JDS leader nabbed
Bengaluru: CBI has arrested a JDS leader K C Veerendra, who is also a casino owner, in a case relating to seizure of R5.70 crore of new currency from his bathroom by the I-T department. RBI has asked banks to preserve CCTV recordings of operations at branches and currency chests to help identify people engaged in hoarding new notes

Demonetisation 'biggest scam'
Nagpur: Former Finance Minister P Chidambaram, launching a scathing attack on the BJP government, termed demonetisation as "the biggest scam of the year" and demanded a thorough probe by a Special Investigation Team (SIT) into it. "I can't get a R2,000 note, yet crores in R2,000 notes found their way to individuals being raided all over the country," Chidambaram told reporters here.

A laddoo for your patience
Delhi BJP workers will visit city homes from today offering a ‘laddoo’ as a part of its ‘thanksgiving’ campaign launched by city president of the party Manoj Tiwari, and take public feedback on demonetisation. People of Delhi are bearing pain due to demonetisation as a "national responsibility" and we are grateful to them, he said.

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