Moscow based 'Master Bank' is facing the possible loss of its license to operate as a result of inspections conducted by the Bank of Russia as part of a Ministry of the Interior initiative, said a representative from the Interior Ministry's economic security directorate to Interfax.

"The withdrawal of their [the Bank's] license to conduct banking activities is being considered," said a ministry representative.

Currently there is an open criminal case against former vice president of MasterBank, Eugene Rogachev, and the deputy chairman of Zolostbanka Alexander Kryukov. The case is investigating the illegal cashing of more than 2 billion rubles ($60 mln) by the bankers.

On Thursday, the Interior Ministry press service reported that Rogachev was taken into custody for violation of house arrest.

Apart from Rogacheva and Kryukov, two former leading Master Bank big-business department specialists, Sergey Kormshchikov and Igor Babic, have also been detained as part of the investigation, which began in March of this year.