SBI, LIC involved in money laundering: Cobrapost

Last Updated: Mon, May 06, 2013 11:45 hrs

An online magazine 'Cobrapost' has accused the State Bank of India (SBI), the Life Insurance Corporation of India (LIC) and various other banks and private insurers of indulging in money laundering.

Earlier in March, Cobrapost had accused India's leading private banks ICICI, Axis and HDFC of being involved in money laundering.

Through a sting operation, Cobrapost exposed that these leading private banks were helping customers convert black money into white, which the Reserve Bank of India (RBI) had initiated investigations into.

According to reports, Cobrapost has named and accused various banks in the country such as SBI, Bank of Baroda, Punjab National Bank, Canara Bank, IDBI Bank, Indian Bank, Yes Bank, Federal Bank and Dhanlaxmi Bank in its second sting operation.

The online magazine also named insurers such as LIC, Reliance Capital, Birla Sunlife and TATA AIG.

Termed as "Operation Red Spider 2", Cobrapost states that the operation, "establishes beyond doubt that money laundering is not confined to private banks, and is not an aberration, as is being made out in certain quarters in the wake of the first expose on March 14 in which HDFC Bank, ICICI Bank and Axis Bank were shown involved in money laundering; it is rather endemic overarching the entire banking system and insurance sector, without exception, however shocking it might be". (ANI)

More from Sify: