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Economy Apr 18, 2013

Action to be taken against ICICI, Axis and HDFC Bank: Finance Min

Mumbai: The government today said action would be taken against ICICI Bank, HDFC Bank and Axis Bank on the basis of an RBI audit report which has detected certain "aberrations", a month after the private banks were accused of money laundering by an online news portal.

"An audit report has come and now the banks would probably be asked for their versions...We don't need to
recommend anything; we discussed the issue and everybody will do whatever one is supposed to do after that. The RBI would be doing what they are required to do," Banking Secretary Rajiv Takru told reporters outside the Mint Road office of RBI.

ICICI Bank is one of the banks found to be violating KYC norms. Reuters.

ICICI Bank is one of the banks found to be violating KYC norms. Reuters.

"I think it would be safe to say that there are actionable points where RBI would need to take some action and consequently government would also need to address them," he said.

Last week, Reserve Bank Deputy Governor H R Khan had said the central bank is initiating action against these banks.

The country's three largest private banks -- ICICI bank, HDFC Bank and Axis Bank -- were last month accused by Cobrapost of indulging in money laundering activities.

PTI


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