The Government on Tuesday said action has been taken against 31 officers and employees of various banks and insurance companies including suspension, on charges of violation of various regulations.
This comes a day after the website Cobrapost levelled allegations of money laundering against several financial institutions.
“So far, 15 officers/employees of various public sector banks have been suspended including one from insurance sector. Beside it, ten officers of PSBs have been divested of their work and six have been asked to proceed on leave”, Finance Ministry said in a release.
The action against the employees has been taken for violation of banking norms and regulations, it added.This followed a directive by Financial Services Secretary Rajiv Takru to CMDs of public sector banks and a state-owned insurarer to take immediate action following Cobrapost, Red Spider 2 expose which was released.
“...Certain PSBs have already taken action and in some cases, the work is still in progress. More action taken reports are expected in near future,” the release said without providing details of employees or the banks.Takru has also sought action taken report from bank chiefs “on utmost priority” in this regard.
The portal had said in a release that “in its continuing undercover operation, spanning several months, Cobrapost finds dozens and dozens of major public sector banks, and many more private banks, across the country are blatantly involved in money laundering, as are major insurers. In all, 23 banks and insurance companies have been exposed”.