Govt suspends 27 public sector bank officials over ‘illegal’ transactions

New Delhi, December 2

The union Ministry of Finance has suspended 27 officials of public sector banks and transferred six to non-sensitive positions over allegations of illegal transactions as the central government continues to plug holes after its announcement to invalidate old high-value banknotes of Rs 500 and Rs 1000.

The suspensions come amid reports of tax authorities conducting raids at several places, including one at Bengaluru where Rs 5.7 crore cash in new currency notes was recovered from two businessmen.

The ministry said in a statement that it noticed that some “irregular“ transactions that were in violation of Reserve Bank of India's instructions.

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"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, adding: “Illegalities will not be tolerated and appropriate action will be taken against individuals involved in irregular and unauthorised activities".

The central government announced that old banknotes were invalid from November 8, sending people across the country scurrying to banks. Several modifications have been made to the original plan since, as the government tries to crack down on possible misuse.

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.

The RBI had previously asked banks to take action against errant officials to ensure cash availability for customers thronging banks. — PTI