Employees of a few banks were involved in illegally transacting the scrapped high value old notes of Rs 500 and Rs 1000 amounting to over Rs 71.47 crore during the demonetisation period, from November 9 to December 30, government said on Friday.
“Banks have reported 14 cases (branches) where bank employees have been found involved in irregular exchange transaction of specified bank notes (SBNs) during the phase of demonetisation,” Minister of State for Finance Santosh Gangwar said in a written reply in Lok Sabha on Friday.
The highest over Rs 46.29 crore was transacted through 3 branches of Axis Bank, in which 3 employees have been suspended, he informed the house.
Eight Dhanlaxmi Bank employees involved in 6 cases, helped offenders transact illegally Rs 22.67 crore.
While among those from public sector banks, State Bank of Mysore involved Rs 1.9 crore (2 cases, 4 suspensions); Bank of Maharashtra Rs 54.90 lakh (2 cases, 5 suspensions) and Syndicate Bank Rs 6 lakh in one case, the minister said.
Gangwar said RBI has advised banks to take action to prevent/detect/contain malpractices or wrongdoing by staff in branches exchange/deposit of SBNs.
Besides, banks have been asked to strengthen internal audit process in the banks including random visits, scrutinies to help detect such malpractices.
RBI has also asked banks to track complete trail of cash movements in large quantities to ensure its instructions in letter and spirit.