RBI investigating forex scam, in touch with CBI and international regulators
RBI is looking into whether appropriate controls had been put in place by banks and if there was adequate oversight
Mumbai: The Reserve Bank of India (RBI) is investigating the alleged foreign exchange violations at Bank of Baroda and will be exchanging notes with the Central Bureau of Investigations (CBI) at an appropriate time, deputy governor S.S. Mundra said on Tuesday.
The RBI is looking into whether appropriate controls had been put in place by banks and if there was adequate oversight, Mundra said on the sidelines of an event organised by the Federation of Indian Chambers of Commerce & Industry (FICCI).
The banking regulator is also examining how safeguards can be built-in while also continuing to liberalize rules in the banking sector. “It should not be that individual incident becomes a systemic or system-wide issue. But yes individual instances, when they happen, give reason to regulating entities to take another look at provisions and think about it," he said.
RBI will also be seeking cooperation from overseas regulators to complete its investigation since funds were transferred to overseas accounts.
Earlier this month, the CBI found that nearly ₹ 6,000 crore had been allegedly transferred out of Bank of Baroda illegally. The Enforcement Directorate (ED) has arrested four people in connection with the case.
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