Tuesday, January 25, 2022

RBI asks banks to tighten systems, public to desist from hoarding

The central bank also urged public to “freely use the notes they have in their hands rather than hoarding them”.

By: ENS Economic Bureau | Mumbai |
December 14, 2016 2:59:28 am

The Reserve Bank of India on Tuesday warned of stern action against wrongdoers and asked banks to carry out a thorough central data checking to detect money laundering. The central bank also urged public to “freely use the notes they have in their hands rather than hoarding them”.

“In an operation of this size, there are always elements that would have behaved otherwise than what is expected of them and we are keeping a constant vigil of the same. We have issued elaborate instructions to all the bank management to do central data checking and whenever they find any inconsistency, it should be pursued further through their internal audit mechanism,” RBI Deputy Governor SS Mundra said.

What Else is Making News

According to Mundra, RBI supervisors are also carrying out similar exercise on the various data points of banks and whenever any untoward transactions or action is noticed, due investigation would be done and then due action would be pursued. “There have already been cases where banks have taken action against the staff members,” he said.

On reports about the involvement of an RBI officer in Bengaluru, Mundra said, “ … it was a junior functionary of the Reserve Bank and it was reported by the investigating agency that he was recorded to be present in a bank branch where some suspected transaction was happening. Having known about that, the concerned employee has been suspended. We have instituted investigation and due action would be taken once the details are ascertained.” On reports of a show cause notice being issued to Axis Bank, Mundra said, “there is no such thing at this point as I mentioned. Wherever such actions are reported, enquiries are made. But as of now no show cause notice has been issued by us.”

RBI Deputy Governor R Gandhi said the banks have since the start of the demonetisation programme till December 10, 2016, issued notes valued at Rs 4.61 lakh crore to the public over their counters and through their ATMs.

Specified bank notes (SBNs) of Rs 500 and Rs 1,000 returned to the RBI and currency chests amounted to Rs 12.44 lakh crore as of December 10, Gandhi said.

In this period, the RBI has also issued to the public through banks a total of 21.8 billion pieces of notes of various denominations of which 20.1 billion pieces belonged to small denominations of Rs 10, 20, 50 and 100s and 1.7 billion pieces belonged to higher denominations of Rs 2,000 and Rs 500.

‘Banks must preserve CCTV footages’

Mumbai: The RBI has asked banks to preserve CCTV recordings of operations at branches and currency chests to help law enforcement agencies in identifying people engaged in hoarding of new notes post demonetisation. In a notification, the RBI said banks should “preserve CCTV recordings of operations at bank branches and currency chests for the period from November 8 to December 30, 2016, until further instructions”.   ENS

📣 The Indian Express is now on Telegram. Click here to join our channel (@indianexpress) and stay updated with the latest headlines

For all the latest Business News, download Indian Express App.

  • Newsguard
  • The Indian Express website has been rated GREEN for its credibility and trustworthiness by Newsguard, a global service that rates news sources for their journalistic standards.
  • Newsguard
Advertisement
Advertisement
Advertisement
X