Amid allegations of money laundering by top three private banks, the RBI on Friday said that its probe into their activities revealed the banks did not follow KYC norms while selling third party products.
'The RBI recently undertook investigations in the light of reported allegations that certain banks were involved in structuring transactions to aid tax evasion and fraudulent transfer of funds. The investigations revealed the need for better regulatory compliance by banks,' the central bank said in its annual monetary policy statement.
ICICI bank, HDFC Bank and Axis Bank were accused of indulging in money laundering both within and outside after an online portal, Cobrapost, conducted a sting operation on these banks. The RBI statement, however did not name the banks.
'The RBI recently undertook investigations in the light of reported allegations that certain banks were involved in structuring transactions to aid tax evasion and fraudulent transfer of funds. The investigations revealed the need for better regulatory compliance by banks,' the central bank said in its annual monetary policy statement.
ICICI bank, HDFC Bank and Axis Bank were accused of indulging in money laundering both within and outside after an online portal, Cobrapost, conducted a sting operation on these banks. The RBI statement, however did not name the banks.