Cobrapost expose: banks, LIC take action against erring staff

Updated - November 16, 2021 10:16 pm IST

Published - May 07, 2013 08:50 pm IST - NEW DELHI:

A day after a web portal alleged instances of money laundering by some state-owned banks and LIC, the government on Tuesday said action had been taken against 31 officers and employees, including suspension, for violation of various regulations.

“So far, 15 officers/employees of various public sector banks (PSBs) have been suspended, including one from the insurance sector.

Besides, ten officers of PSBs have been divested of their work and six have been asked to proceed on leave,” the Finance Ministry said in a release.

This followed a directive by Financial Services Secretary Rajiv Takru to CMDs of public sector banks and LIC to take immediate action following Cobrapost, Red Spider 2 expose which was released on Monday.

“... certain PSBs have already taken action and in some cases, the work is still in progress. More action taken reports are expected in the near future,” the release said without providing details of employees or the banks.

Mr. Takru has also sought action taken report from bank chiefs and Life Insurance Corporation (LIC) “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.”

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