Cobrapost slams clean chit to banks by RBI
March 23, 2013  18:44
Whistle-blowing website Cobrapost.com on Saturday differed with the clean chit given by the RBI to the money-laundering practices exposed by it in ICICI Bank, HDFC Bank and Axis Bank. 

A press statement issued by the website stated, "The manner in which the RBI deputy governor has rushed to issue the statement, even before the Central Bank could complete the inquest it has initiated into money laundering practices by the three banks, even before these banks could complete their own investigations into the alleged misdemeanour of their officials, and even before the Income Tax Department could come up with its own finding, is tantamount to be self-serving and is a brazen attempt on the part of the Deputy Governor to not only give these banks a clean chit but also mask the miserable failure of the banking regulatory mechanism of the RBI. One gets the impression that the RBI deputy governor has taken upon himself to become the spokesperson of the three banks concerned".

It added, "For the RBI to say that there is no offence as there was 'no transaction' is a very novice reading of the law and a willful ignorance of rules and regulations supposed to be crafted and implemented by the RBI itself".
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