The Reserve Bank of India on Monday denied rumours that it has initiated any action to cancel the banking licence of Axis Bank in the wake of recent irregularities in a few branches of the bank post demonetisation.
“Not initiated any action to cancel the banking licence of Axis Bank in the wake of certain allegations about some serious irregularities in transactions relating to deposit/exchange of Specified Bank Notes in a few branches of the bank,” the RBI said in a statement today.
There have been reports of several irregularities at some branches of Axis Bank following the government’s move to demonetise high-value currency notes. It has been alleged that some officials of the bank connived with cash traders to exchange huge volumes of old currency into new notes in contravention of prescribed laws.
On December 9, the Income-Tax department discovered 15 fake bank accounts operating in the Chandni Chowk branch of Axis Bank in New Delhi. According to reports, a total of Rs 70 crore was allegedly found in these fake accounts.
Besides, the Income Tax department on November 25 raided the Kashmere Gate branch of Axis Bank in Delhi. The raids were conducted after two people were held with Rs 3.5 crore in new notes.
The bank managers reportedly took the commission in gold.
Meanwhile, Axis Bank has suspended the bank accounts of some bullion dealers and jewellers as part of "enhanced due diligence" to stamp out any attempt to legalise unaccounted wealth following the demonetisation announced on November 8.
“We have temporarily suspended transactions in a few current accounts as a part of a larger enhanced due diligence exercise being conducted on transactions post-demonetisation,” a bank spokesperson said.
The bank further said that the suspended gold dealers’ accounts will be restored over the next few days after an “enhanced due diligence process”.
Axis Bank, country's largest nominated importer of gold, has suspended nearly 30 employees for violating rules, a media report said.
The Central government scrapped 500-rupee and 1,000-rupee banknotes on November 8 in a bid to flush out cash earned through illegal activities, or earned legally but never disclosed to tax authorities.
