Action against banks involved in wrongdoings soon, says central bank

The Reserve Bank of India (RBI) said it had completed investigations against banks mentioned in the Cobrapost expose and would take action if they were 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,” RBI Governor D Subbarao told reporters after the bank’s central board meeting here.

“The first is action against individual institutions who are involved in practices which are not consistent with the banking regulation and prudential banking,” he added.

The statement came hours after online magazine Cobrapost named four new banks as having offered money laundering services. In all, the portal has named 27 institutions in its series of exposes over two months.