156 state-own bank officials suspended, 46 transferred for illegal practices during note ban phase

The RBI has also directed the banks to take strict actions to eradicate such malpractices or illegal activities by their staffs.

By: News Desk |
February 4, 2017 9:28 am

After Prime Minister Narendra Modi surprisingly announced demonetisation on November 8, 2016, and the new currency denominations were issued, 156 officials of different state-owned banks were suspended and 41 transferred as they were found involved in irregularities related to the note ban order.

This information has been conveyed to the Parliament on February 3.

“Officials of several state-own banks were found involved in irregularities relating to demonetisation. Under such circumstances, public sector banks (PSBs) have so far reported to have placed 156 officials under suspension and to have transferred 41 officials,” said, finance minister Arun Jaitley in the Lok Sabha.

The banks, so far, reported having filed 26 police cases filed and the Central Bureau of Investigation (CBI) wherever criminal cases were involved.

“As informed by the Reserve Bank of India, 11 employees have been placed under suspension where bank employees have been found involved in ‘irregular exchange of transaction’ of specified bank note (SBN) during the phase of demonetisation. Further, the banks have started internal probe and complaints have been filed with police/CBI,” added Arun Jaitley.

The RBI has also directed the banks to take strict actions to eradicate such malpractices or illegal activities by their staffs. The central bank had already surfaced a circular in which banks were also advised to strengthen the internal audit process including random visits in order to detect and avoid any malpractice in the exchange or deposit of specified bank notes in the branches.