Cobrapost expose: Banks suspend employees under FinMin heat In the aftermath of Cobrapost 2, state-owned lenders including Punjab National Bank (PNB), Bank of Baroda (BoB) and IDBI Bank on Tuesday suspended cumulatively five officials allegedly involved in money laundering and KYC (Know Your Customers) violation norms. The finance ministry is exerting pressure on all institutions to take rapid actions, sources from the banking industry told moneycontrol.com.
All those suspension can be revoked provided final investigation reports exonerate them. Online investigative news website Cobrapost had carried out a sting operation on 23 financial institutions including large public sector banks, insurance companies and some mid size private sector lenders. In a press conference on Monday, it alleged all those of helping people convert black money into white by way of investment in their schemes. India's third largest lender Punjab National Bank (PNB) on Tuesday suspended two out of three employees allegedly involved in Cobrapost expose. Those were working in South Delhi and Noida branches in the capacity of cheif manager and assistant general manager. However, decision is not yet taken on the third employee based in South Delhi. "The bank prima facie has not found any evidence of violations. The conversations between Cobrapost and bank officials were purely of colloquial nature. Investigation is on. We are looking into the matter," said a senior official from PNB confirming the development. He did not wish to be quoted. More at: http://www.moneycontrol.com/news/business/cobrapost-expose-banks-suspend-employees-under-finmin-heat_866627.html ~Avelino
