Cobrapost exposures: What next? - Moneylife

Cobrapost exposures: What next? - Moneylife

Answers are welcome.



Please read the following ET report in the context of my observations in the article:
Economic Times, May 31, 2013
Some truth in Cobrapost expose, will take action: D Subbarao, RBI
By PTI | 30 May, 2013, 07.14PM IST
To download ET mobile app, call 1800-200-5810
AHMEDABAD: There is "some truth" in Cobrapost's allegations of wrong doings by banks and RBI has issued notices to their managements, central bank Governor D Subbarao said today.

"We have done study of those banks, investigated them ... We have done a larger study of those banks and we have issued notices to the bank managements and shall take appropriate actions," Subbarao said at a question answer session during the R L Sanghvi Endowment AMA Annual Lecture on Economics.

RBI had launched the investigation into the working of banks following the expose which showed some bankers giving suggestions to customers on ways to bypass regulatory norms.

The first expose had named ICICI BankBSE -0.40 %, Axis BankBSE -0.76 % and HDFC BankBSE -2.33 %. Later 23 public and private sector banks and insurance companies figured in the expose relating to money laundering.

"I am not saying that everything that has been exposed just happened ... there is some truth to it. We will assess what went wrong, how much went wrong. We shall take action," the Governor said.

However, Subbarao added that banks cannot be held responsible for money laundering as it is not their job to find out the source of the money being deposited.

"Of course, if there are some suspicious transactions, if there are cash transactions there are norms and systems to report. They are suppose to report...and if they don't we shall take action against the banks," he said.

Apart from RBI, the Finance Ministry as well as the insurance regulator IRDA too are looking into the allegations levelled by the online portal.

Readers' opinions (4)
Nidhi Sood (Haryana)
Let your future be beautiful, happier and secured so that it do not get determined by your present. Support Narendra Modi and Follow him on @narendramodi on Twitter with #NaMoForce.
Armando700 (Jabalpur)
finally some sensble talk ...if Banks are not to check for source then who is responsible? someone let me know
Iyer (Mumbai)
Isnt it amusing that the top Financial regulator of the country is being forced what to do by an unknown international sting house? Never mind unintended or not the least the responsibility of the sting post called Cobrapost! It raises more than ever or anything about the highly paid and well taken care body like RBI or the top octagenerina PM, Planning Commission, PM Economic advisor etc etc are just just spending the publc money but for simple exposes have to come from unknown free sources.The fact that it has been accepted by them all mean one of two things or BOTH!. that they never cared in the first place on such offences since such activities are inherent to the corrupt political and administrative system now part of Indian legacy and/ or the free expose has to be acted for public stunt. Bottomline is if corruption and econoimc offences have to stop, it has to start from top .. this expressly mean Leader of UPA and NDA , their families and friends , PM and his coterie , then the message has to travel down. NOt a cobra post expose from free source. It mocks of the entire system and people operating them for such a large country to be told by an unknown agency . it si obviuos that the agency has proved it more efficient than RBI, Finanace Minister, PMO , Advisors to PM etc. Let us start cleaning teh system. Sack all retired people from post retirement service. There lies the truth of corruption.. Get younger generation a chance to prove..
Armando700 (Jabalpur) Replies To Iyer
has anyone tied hands of young gen?

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