Customers wait to exchange Indian five hundred and one thousand rupee banknotes at a Syndicate Bank branch in Dadri, Uttar Pradesh, India (Photographer: Anindito Mukherjee/Bloomberg)

Demonetisation: 27 Senior PSU Banks Officials Suspended

In a major crackdown on bank employees involved in irregularities post demonetisation, as many as 27 senior officials of various public sector banks have been suspended and six others transferred to check corrupt practices.

The suspensions comes amid 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. Some cases have come to notice of officials involved in carrying out transactions which were irregular and violative 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 unauthorised activities".

Following the decision of the government to demonetise of old Rs 500 and Rs 1,000 notes from midnight of November 8, 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.

Meanwhile, the Income Tax department has also detected undisclosed income worth Rs 1.64 crore in Jan Dhan bank accounts in its probe post demonetisation.