Chidambaram: RBI, FinMin starts inquiry into charges of money laundering by employees of 3 pvt sector banks

Finance Minister P Chidambaram today said the RBI and finance ministry have started inquiry into charges of money laundering by some employees of 3 private sector banks. Speaking to newsmen after a meeting with the Chief executives of public sector banks and financial institutions in New Delhi, the Finance Minister said the matter is being investigated. Mr. Chidambaram also said, it is early to come to a conclusion as of now as the epartment of financial services and the RBI are examining the allegations closely.

AIR correspondent reports, the country's three largest private banks including ICICI Bank, HDFC Bank and Axis Bank were accused of indulging in money laundering. An online portal Cobrapost claimed that a sting operation conducted by it has revealed a money laundering scam.

Finance Minister, Mr. Chidambaram also hoped the Reserve Bank of India will address liquidity concerns of the economy in its monetary policy to be announced tomorrow. He said the finance ministry is in touch with the RBI Governor and he was certain that the liquidity issue will be addressed by the RBI.The Finance Minister said, the government will infuse 14,000 crore rupees in public sector banks in 2013-14. He also said 215 projects with investment of 7 lakh crore rupees in five sectors currently stalled was a matter of concern. Mr Chidambaram also desired that the banks take firm steps to recover the Non-Performing Assets.