Take action against officials involved in illegal practices while exchanging currency: RBI tells banks

Two weeks since implementation of the new policy, people are still facing problems in exchanging old currency notes with new ones.

By: Express Web Desk | New Delhi | Updated: November 22, 2016 8:09 pm
demonetisation, currency ban, pm modi, black money, black money modi, withdrawal limits, new notes, 500 rs notes, 1000 rs notes, 2000 rs notes, rbi, rbi rules, india news, indian express People stand in queue outside bank to exchange currency notes. (File Photo)

After the government’s move to demonetise old higher denomination notes to clamp down on black money, the country is facing a cash crunch as people are still queuing up outside banks and ATMs to keep up with the policy changes. As the government attempts to make currency available to all sections of the society, there have been reports of few branch officials indulging in fraudulent practices while exchanging specified bank notes in cash, according to a statement issued by the Reserve Bank of India. In order to stop the officials to partake in such activities RBI has advised banks to take stern action against anyone found using unfair means to exchange notes.

Watch: RBI, Govt Started Printing New Currency Much In Advance, Says Arun Jaitley

“Banks are advised to ensure that such fraudulent practices are stopped forthwith through enhanced vigilance and take stern action against officials involved in such activities,” RBI said.

RBI has ordered banks to ensure strict compliance of instructions issued by it for the exchange of specified bank notes (Rs 500 and Rs 1,000 notes) and also to deposit these notes in the customer accounts. The banks are also asked to maintain a detailed list of denomination wise notes and the total value of the discontinued notes deposited in each account from November 9, 2016.

Two weeks since implementation of the new policy, people are still facing problems in exchanging old currency notes with new ones. On one hand the government has eased caps on account withdrawals, on the other hand it has tightened rules for currency exchange.

The original ceiling placed at Rs 4,000 on exchange of old currency was raised to Rs 4,500 within five days. The government also decided to use indelible ink, which is used during elections, to prevent people to exchange currency multiple times.

As per the Reserve Bank of India’s data, banks disbursed Rs 1.03 lakh crore over the counter and via ATMs between November 10 and November 18, as against exchange and deposits of over Rs 5.44 lakh crore worth of scrapped Rs 500 and Rs 1,000 notes at different banks till November 18. The government has put a limit of Rs 24,000 per week per person in withdrawal from bank account.

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  1. M
    Mansukhani Bhagwan
    Dec 8, 2016 at 3:40 am
    Crores of new notes seized proved delivered by Bank officers on payment of commission proves how corruption deep in the blood of Govt officers who so ever get a chance. Black money with business community is in circulation but idle lying in the shape of notes, Gold, Benami properties and legal properties purchased with major share of black money. Maximum black money lying with officers posted in custom, excise, service tax, income tax, ports, Rly, engineers, politicians. No work done without payment. Honest man can't survive in business as his file will not move from one table to other without payment. Govt never take action against officers for wrong decisions, delay in clearing the files, head of department never taking decision over ruling notes of juniors but consult juniors before moving file so corruption at every stage and business man either to prepare for payment or he should be out of business. Corruption has gone deep in our blood since decades and these habits will never go out. We are jugaru and make every attempt to change old notes illegally and now since ball is in the coat of bank officers so money collected by corruption will be partially ped to bank officers to change. Honest persons will remain in line for Rs 24000/- which will also not get but crores will be changed from back door of banks by corruption.
    1. O
      Nov 22, 2016 at 3:53 pm
      Curruption is in indian DNA any believes otherwise lives in coockoo land. Modi the great Fekoo make us all believe that just by changing notes india will change is biggest of his BS. Now same politicians and bureacrats will take bribes in bigger notes.
      1. A
        Nov 22, 2016 at 4:56 pm
        RBI should also ask what if bank officials themselves being on higher posts do such illegal activities, who is going to stop them and how ????
      2. B
        Bijan Mohanty
        Nov 23, 2016 at 4:16 am
        Modified guidances are impractical and non-implementable. All junk.
        1. B
          Bijan Mohanty
          Nov 22, 2016 at 4:39 pm
          RBI has mismanaged the w thing. Urjit Patel has proved himself unworthy of the post.
          1. K
            Nov 22, 2016 at 3:42 pm
            Nationalized banks were going to be the conduit to whiten black money, it has become evident that many corrupt bank officials with political backing are having a heyday exchanging old currency for new.
            1. D
              Nov 22, 2016 at 5:28 pm
              RBI should collect information from customers, Spy officers and put them in jail along with culprit who are exchanging their money...
              1. A
                Nov 22, 2016 at 5:56 pm
                RBI is said to be in the pockets of Ambani. Don't know what is the real truth there, but a lot of rumors and suion swirling around.
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