Axis Bank on Monday refuted a local media report that claimed the lender was about to lose its banking licence over money laundering activities. The bank said that its systems were in compliance with regulations, Reuters reported. The bank said the report in Hindi regional daily Dopahar was “false and malafide”. The Reserve Bank of India later announced it has not initiated action to cancel the bank’s licence.

Axis Bank Limited, the country’s top importer of gold, on Monday suspended the bank accounts of several bullion dealers and jewellers after two of its executives were arrested over alleged money laundering cases. A Delhi Court extended police custody of Axis Bank manager Vineet Gupta for three days and sentenced its manager Shobit Sinha to 14 days in judicial custody, ANI reported. A Mumbai-based dealer said these developments could impact the bank’s gold imports and lead to December’s imports dropping to 30 tonnes, down from 107 tonnes in 2015’s corresponding month.

Last week, the bank announced it had suspended 19 staffers over alleged violations at a branch during the implementation of the Centre’s demonetisation drive. In a stock exchange filing statement, the third largest private sector bank in the country said, “We firmly believe that said news is intended to spread panic among the general public, demoralise the staff and damage the reputation of the bank.”

The bank’s shares were trading at a declined rate of 2.5% on the National Stock Exchange at 445 rupees during Monday’s trade.

On December 9, Income Tax officers had discovered that more than Rs 100 crore in old Rs 500 and Rs 1,000 notes were deposited in 44 fake accounts at an Axis Bank branch in Delhi’s Chandni Chowk area.