With nearly all the banks and insurance companies targeted by the recent sting operation promising to take action, more officials face suspension. All banks and insurance companies said that they have initiated inquiries and would take action, a Times of India report said.

Cobrapost on Monday alleged that several government-owned banks and insurance companies offered to open bank accounts and lockers for customers without following Know Your Customer (KYC) norms and convert their black money into white, aiding illegitimate money laundering.

Chennai-based Indian Bank has ordered the immediate suspension of the assistant general manager with the bank's Mehrauli Institutional area branch in New Delhi. Similarly, Birla Sun Life has also placed officials identified in the sting under suspension.

State Bank of India has said that it would act “immediately” against those identified. Life Insurance Corporation of India has said that it will take necessary action against employees if any violation is noticed at any level, the TOI report said.

Read the full report here