Key takeouts from CobraPost sting on HDFC, Axis and ICICI
Key takeouts from CobraPost sting on HDFC, Axis and ICICI R Jagannathan The CobraPost sting operation that has uncovered alleged connivance in money laundering by three of the bluest of blue chip Indian banks – HDFC, ICICI and Axis – is a stinging indictment of our black money culture and the Reserve Bank's ability to police the banking system. It also raises question-marks about the advisability of giving private sector businesses banking licences at a time when there is political pressure for the same, and weak willingness to create a tough regulatory regime. The sting – assuming its video-graphed contents are fully authenticated – is chilling for the simple reason that an unknown person claiming to represent a politician with tonnes of black money is easily able to convince bank officials that he needs solutions for converting black money into white. Not only are the bank officials willing to oblige, but they go out of thei...