The Reserve Bank of India had ordered HDFC Bank Ltd, the largest bank in the country in terms of market value, Axis Bank Ltd and ICICI Bank Ltd to be charged with penalties due to their failure to comply with banking rules such as those on money laundering.
According to the order, Axis is required to pay INR 50 million or US$860,659, HDFC would need to pay INR 45 million while ICICI would be required to pay INR 10 million. This order was published in a statement on the website of the Indian central bank.
The clampdown comes after a time when financial regulators and law enforcement agencies are increasing their coordinative efforts throughout the world to tackle fraud and money laundering activities. One of the largest payouts made was enforced against HSBC Holdings Plc, the largest bank in Europe, requiring a penalty amounting to US$1.92 billion in a case submitted by the US Justice Department.
Sujit Ganguli, spokesman for ICICI Bank in Mumbai declined to make any comment while Somnath Sengupta, executive director of Axis Bank Ltd as well as Neeraj Jha, HDFC Bank spokesman did not answer calls.
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