Axis Bank suspends 19 employees for exchanging currency illegally

MUMBAI: The country's third largest private sector lender Axis BankBSE -0.09 % on Tuesday said that it has suspended nineteen employees across India for allegedly involved in corrupt practices in exchanging currency post demonetisation.

The bank also said that it has hired KPMG to conduct a forensic audit to strengthen its processes. "We have identified and suspended 19 employees at various levels in hierarchy across the country, for alleged deviations," an Axis Bank official said.

"We have also appointed KPMG India to conduct forensic audit and have also formed a special task force of senior bank staff to conduct parallel investigation into possible deviations."

Currently 25 of KPMG’s auditors along with Axis Bank's senior team is in Delhi investigating the Kashmere gate branch where some staff were supposed to have indulged in corruption.

The team will also conduct live checks on transactions. "Our top management team is travelling across branches and personally reviewing transactions," the bank said.

On Monday Enforcement Directorate arrested two of Axis Bank's managers in New Delhi after it launched an anti-money laundering probe. ED sleuths also seized 3 kg gold bars which prima facie looks like a racket of illegally converting old notes in connivance with banking authorities.

The case was first detected by the Delhi Police after it intercepted three people with cash of about Rs 3.7 crore in old notes, in front of the said Axis Bank branch last month, and the ED took cognisance of the police FIR to slap money laundering charges against the accused.

Axis Bank