Officials said the taxman visited the bank's branch in Chandni Chowk area here and found that huge sums were deposited in multiple accounts post November 8, when Prime Minister Narendra Modi announced the demonetisation of Rs 500 and Rs 1000 notes.
"The department is checking the records of the bank as part of a survey operation. There are some instances under scanner where huge deposits have been made post the currency scarp and that is being probed," officials said.
"The bank is committed to following the highest standards of corporate governance and has zero tolerance towards any deviation on the part of any of its employees from the set model code of conduct. Strict action will be taken against any employee found deviating from the guidelines. We would also like to add that we are cooperating with the investigating agencies," it said in a statement.
They added the taxman was probing some accounts which were dubious as they were opened by allegedly using fake Know Your Customer (KYC) documents and it was suspected some entry operators used the accounts to deposit funds.
The bank's Kashmere Gate branch had recently come under the lens of the department for alleged irregularities in deposits post demonetisation. The Enforcement Directorate (ED) had arrested two Managers of the Axis Bank and another person in connection with its money laundering probe.