Mumbai: The government is in talks with the central bank and other stakeholders over raising penalties on banks allegedly involved in money laundering, Rajiv Takru, Secretary of Financial Services at the Ministry of Finance, said on Wednesday.
               
Reserve Bank of India Governor Duvvuri Subbarao said last week there was "some truth" in allegations that some banks had been involved in money laundering and assured action.
               
An independent investigative journalist recently alleged that most banks in India were involved in money laundering activities and were helping customers avoid paying income tax. The maximum penalty for money-laundering is currently Rs 5,00,000.

(Agencies)

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