In its probe into the issues raised by the Cobrapost sting operation, the Reserve Bank of India has revealed various discrepancies in banking operations, including non-compliance of KYC norms and fictitious PAN cards. After the Cobrapost expose that alleged money laundering by banks, RBI has completed the investigation into the working of banks. CobraPost altogether had named about 33 public and private sector banks in its various money laundering operations.
The RBI report has pointed string of violations on several counts by these banks, which include the usage of identity cards of unknown NRIs and dummy PAN, unauthorized gold sales and non-compliance of know your customer norms. Further, the central bank also revealed that banks’ staffs were also engaged in giving suggestions to customers on ways to bypass regulatory norms.
In its the annual policy review last week, the central bank had said that it will take systemic action to deal with the problem. RBI’s governor D Subbarao had said that firstly the action will be taken against individual institutions involve in practices which are not consistent with the banking regulation and prudential banking.
