In a major crackdown on bank employees involved in irregularities post demonetisation, 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 irregular transactions violating RBI 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”.
People have been depositing invalid notes into banks after the government demonetised old Rs 500/1000 notes, effective from November 9, 2016.
The Reserve Bank has imposed limits on cash withdrawals.
The ministry also said banks have done commendable work by putting in long hours of untiring effort in managing banking transactions.
In the biggest-ever seizure of cash in new currency, over Rs 5 crore even as the Income Tax department said it detected unaccounted income worth Rs 152 crore after it conducted searches in a dozen premises in Bengaluru and other locations.
Earlier, the RBI had asked banks to take action against erring officials to ensure cash availability for customers thronging the banks.