In a major crackdown on Bank employees involved in irregularities post demonetization, as many as 27 senior officials of various public sector banks have been suspended and six others transferred to check corrupt practices.The suspensions come among reports of Income Tax authorities conducting search and seizure places at many places, including one at Bengaluru where Rs 5.7 crore cash in new currency notes was recovered from two businessmen.
Officials involved in carrying out transactions violated RBI’s rules
Some cases have come to the notice of officials involved in carrying out transactions which were irregular and in violation of RBI’s instructions, the finance ministry said in a statement.
“Action has been taken in such cases and 27 officials of various public sector banks have been placed under suspension and six officials have been transferred to non-sensitive posts,” it said.
It also cautioned that while all efforts are being made to facilitate genuine transactions, “illegalities will not be tolerated and appropriate action will be taken against individuals involved in irregular and unauthorized activities”.
RBI has asked banks to take action against erring officials
Following the decision of the government to demonetise of old Rs 500 and Rs 1000 notes from midnight of November 8, 2016, people have been depositing the invalid notes into banks.The Reserve Bank has put in cash withdrawal limits for individual as well as businessmen.
The ministry further said that banks have done commendable work by putting in long hours of untiring effort in managing banking transactions. Earlier, RBI had asked banks to take action against erring officials to ensure cash availability for customers thronging banks.