India’s largest bank has begun to shut its bank account after a legal battle to shut it down over alleged illegal activity, according to reports.
The Supreme Court on Thursday ordered the government to shut off its accounts, and the banks to shut their business in the country after the country’s top court rejected a petition by a group of citizens who want to ban the payments firm from operating its branches.
The court’s order is based on a petition filed by a number of citizens in the capital, New Delhi, seeking to bar the bank from using its branches as money service businesses and prevent the bank’s account holders from making payments through it.
The bank’s chief executive, P. Sudhir Prakash, issued a statement saying that the decision “will affect the lives of millions of bank account holders across India and across the world.”
Prakash added that the bank had already reached out to all its customers who were affected and is committed to providing all customers with solutions to their problems.
“The decision was a significant setback for the Indian government and its bank, which has faced widespread criticism over its handling of money laundering cases.
The move was opposed by the government and the bank, but it could be overruled by the court.
The case was brought by the Bharatiya Janata Party (BJP), which has claimed that it is against money laundering and has called for the shutdown of the bank.BJP leader Piyush Goyal said that the government should consider imposing a ban on all payments transactions from the bank until the government’s response.