RBI: Action against banks involved in wrongdoing soon

Subbarao: Already taken systemic action to deal with the issue.

Written by Press Trust Of India | Srinagar | Published: May 10, 2013 4:55:39 am

The Reserve Bank of India (RBI) on Thursday said it has completed investigations against banks following the Cobrapost expose and will take action if they are found guilty of violating prudential banking norms.

“We have done investigations,we have prepared an internal report. There are processes to be followed to take investigations to its logical closure… The first is action against individual institutions who are involved in practices which are not consistent with the banking regulation and prudential banking”,RBI Governor D Subbarao said at a press conference after the RBI’s central board meeting here.

The central bank,Subbarao further added,has already taken systemic action to deal with the problem and many of them were announced in the annual policy document unveiled last week. As far as individual banks are concerned,he said,“we got to follow procedure” before deciding on imposing penalty on them for violating the prudential banking norms.

Subbarao further said,“If you go through policy documents that came out last Friday,there were initiatives which are by way of systemic action to address some of the deficiencies that have come to notice as a result of investigations.”

Indian Bank suspends employee

Chennai: State-owned Indian Bank on Thursday said it has suspended an official who is accused of wrong doings by an online portal in an expose. The bank has also initiated the exercise to bring all operative accounts with it under KYC norms.

Indian Bank chairman and managing director TM Bhasin said that the bank has placed under suspension R Manohar,assistant general manager at the South-Delhi branch,for giving “hollow” advice. “He has given ‘hollow’ advice… by hollow advice he has given wrong information. And since he has given such wrong advices,we took a call on suspending him,” Bhasin said.

SBI: Probing credentials of sting findings

Chandigarh: On the State Bank of India’s stand on the money laundering allegations,chairman Pratip Chaudhuri said on Thursday that the bank would act against the charges and that it is already conducting an audit,which is yet to be completed.

“We are checking whether Cobrapost’s sting operations have any credentials,” Chaudhuri said at the Panjab University campus.

“When it comes to money laundering one has to check whether an account holder split up his or her deposits and how many deposits he or she is making into these accounts in a single day,” he added. ENS

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