RBI denies plans to cancel Axis Bank's licence

The Reserve Bank of India has clarified that it hasn't initiated any steps to cancel Axis Bank's licence over money laundering. The central bank has dismissed it as "rumours" that were initiated after some media reports suggested the possibility of regulatory action against the bank.

"Not initiated any action to cancel the banking licence of Axis Bank in the wake of certain allegations about some serious irregularities in transactions relating to deposit/exchange of Specified Bank Notes in a few branches of the bank," said RBI.

The bank has also issued a clarification to the stock exchanges saying that the reports over licence cancellation are "false and malafide."

Recently, Axis Bank has suspended 19 of its employees for being involved in money laundering and the media reports suggested that as a result of this the lender may lose its licence.