New Delhi: As series of irregularity were reported in the functioning of Axis Bank, rumor were doing around that license of the Bank could be revoked. The Reserve Bank of India on Monday subsided all the negative news and made it clear that it has no plan to cancel the license of the bank.
In the wake of allegations about some serious irregularities in transactions, this rumors badly affected the business interest of the bank. The price of shares reduced by 2.5 percent in a day. RBI, in its statement, clarified that it has no plan to take coercive action against the bank. This news comes up as a big relief to the bank, as the news created panic in the stakeholders. Evening newspaper Dopahar had reported that RBI is mulling to defunct the bank by canceling its license.
Following the raid conducted by Enforcement Directorate and Income Tax department at the Kashmiri gate and Chandni Chowk branch. RBI senior officials are looking after the aspect if the license of the bank could be revoked. Nexus between bank officers and the Businessman were unearthed, which was working on the commission basis to convert the old currency into news one. 50 fake accounts were noticed which were made to make the black money into white following the demonetization drive initiated by Prime Minister Narendra Modi.
Despite several statements of the bank clarifying that Newspaper reported false and maladies, shareholders did not take it seriously. It adversely affected the reputation which leads to damage in the share price. Three of the Bank officials are already in Enforcement Directorate custody which is leading the money trail. Things started when Delhi Police arrested few businessman with Black money. It was found that they were trying to exchange their old currency for the new one with the help of few officers of Kashmiri gate Axis Bank branch. Later the investigator recovered that Chandni Chowk branch of theba was also indulging in the illegal activity.