Cobrapost releases more instances of money laundering by banks, even in the ‘holier than thou’ public sector – Bank of Baroda, Allahabad Bank, Bank of India, Central Bank of India, and Bank of Maharashtra – thereby conclusively proving that the rot is endemic. Following up on its mega-expose of March 14, 2013 codenamed Operation Red Spider, Cobrapost brought to you more shocking cases of fraud from within banks on April 5 and on May 6.
In this edition, codenamed Operation Red Spider Part III, we bring you 10 banking institutions – IndusInd Bank, Bank of Baroda, ING Vysya Bank, Allahabad Bank, Bank of India, Central Bank of India, Bank of Maharashtra, HDFC Bank, ICICI Bank and Axis Bank – and the murky world that exists within their walls, with junior to top level officials at dozens of branches admitting on camera their complicity in crime.
The videos, across the large spectrum of such illegal activity, clearly prove that this is not simply the design of some criminally oriented officers, or for that matter, some young, front-office executive succumbing to performance pressures. It proves without doubt that this corruption is endemic, and spread through the Indian banking and insurance system.
However, the reaction of the authorities to videotaped evidence on such a large scale has, at best, been tepid. Initially, the nation’s highest financial controller, the RBI, remained insensitive, with its Deputy Governor K.C. Chakrabarty dismissing all evidence because he thought it was okay since “no transaction” had taken place.
Thereafter, all banks have been asked to strictly adhere to KYC norms. Even older account holders’ antecedents are being verified. The banks involved in money laundering have punished their staff members – 50 so far – with suspension. The Finance Ministry has asked the Banking Association of India to launch a thorough probe into the functioning of all banks, while individual banks have announced their own probe, and punishing the staff involved with suspension.
Detailed press release link: click here