New Delhi: The government yesterday asked top financial institutions, including State Bank of India, Punjab National Bank and the Life Insurance Corporation, to probe into the allegations of money laundering as exposed in a sting operation by an investigative website Cobrapost.
Financial Services Secretary Rajiv Takru has asked the chairman-cum-managing directors of various Public Sector Banks (PSBs) to probe the allegations, the finance ministry said in a statement.
Cobrapost has alleged in a sting operation that at least 23 top public and private banks and insurance companies have been doing large-scale money laundering.
“Money laundering practices are part and parcel of banking and insurance business across the board. Even a walk-in customer can avail of such services that help him launder all his unaccounted cash,” Cobrapost said in a press release.
The website claimed that it found large-scale wrongdoing by banks and financial institutions through an undercover operation run for nearly six months in various states and union territories, including Delhi, Uttar Pradesh, Rajasthan, Haryana, Andhra Pradesh and Karnataka.
It has named 23 public and private sector banks and insurance companies. Public sector firms include State Bank of India, Bank of Baroda, Punjab National Bank, Canara Bank, Indian Bank, Indian Overseas Bank, IDBI Bank, Oriental Bank of Commerce, Dena Bank, Corporation Bank, Allahabad Bank, Central Bank of India, and their insurance associates.
Private sector firms include Yes Bank, Dhanlaxmi Bank, Federal Bank, DCB Bank, HDFC Bank, ICICI Bank and Axis Bank, and their insurance arms. The website has also named LIC of India, Reliance Life Insurance, Birla Sunlife, and Tata AIG.
Several of these firms denied the allegations. IANS
