RBI: Keeping a ‘close watch’ over black money probe on HSBC

When asked whether the RBI would order a probe into HSBC’s Indian operations, an RBI official said, “this is not in our domain.

The Reserve Bank of India on Thursday indicated that it is keeping “a close watch” on global banking major HSBC, which is facing a probe for alleged tax evasion and money laundering at its Swiss private banking unit.

RBI Deputy Governor SS Mundra said, “as a regulator, these developments are in our notice and we would keep a close watch on all these.” Mundra, who was speaking to reporters on the sidelines of a function organised by the IIFL Group, declined to divulge further details.

As reported by The Indian Express on February 9, as many as 1,195 Indians had parked funds (Rs 25,420 crore) in HSBC’s Swiss branches.

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The Swiss prosecutors are probing HSBC Private Bank as well as unknown persons for “suspected aggravated money laundering” activities.

Earlier this week, the Income tax department had surveyed HSBC’s Mumbai headquarters in connection with the black money probe. The bank in its annual report published earlier this week had also said that Indian tax authorities had issued summons and request for information to “an HSBC company in India”.

When asked whether the RBI would order a probe into HSBC’s Indian operations, an RBI official said, “this is not in our domain. We can do it (probe) only when an agency like the CBI asks us and share information. We can then ask CBI or whichever agency to share information and conduct the probe from our side. We don’t have powers to raid or seize documents. Based on the investigative agency’s documents we can ask for documents and information from the party.”