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New Delhi, Mar 3: The Reserve Bank of India (RBI) has refused to share its banks’ inspection reports on alleged money laundering laws and other violations with Central Economic Intelligence Bureau (CEIB), citing legal hurdles. The RBI was required to share relevant extracts of inspection reports with law enforcement agencies and CEIB, an apex intelligence agency under the Finance Ministry, to check black money and other financial crimes where gross violations of Know Your Customer (KYC) guidelines and Prevention of Money Laundering Act (PMLA) are noticed, official sources said. (Read: Reserve Bank of India: PSBs should look at alternatives beyond government infusion) Also Read - Rs 2000 Notes News: Has Centre Decided to Discontinue Printing of Rs 2000 Notes? This is What Modi Govt Said | Read Here
It had earlier given assurance about sharing of information relating to Foreign Exchange Management Act (FEMA) violations with CEIB, which they share with Enforcement Directorate (ED), they said. But the central bank has not been sharing such information, the sources said. The matter of non-sharing of inspection reports by RBI with CEIB was discussed during a recent meeting of the Economic Intelligence Council (EIC) headed by Finance Minister Arun Jaitley. Also Read - Sitharaman Holding Review Meeting With Heads of Banks, NBFCs on Loan Recast | What to Expect
At the meeting, it was highlighted by the CEIB chief that while initially RBI had agreed to share the extracts of inspection reports with it but, later on, they changed their stand. RBI has cited “legal impediments” in sharing the reports with CEIB as it is not a statutory body, the sources said quoting minutes of the meeting.