RBI official arrested for alleged involvement in exchanging Rs 1.51 crore

A senior Special Assistant of the Reserve Bank of India (RBI) has  been arrested by the Central Bureau of Investigation (CBI) in Bengaluru for his alleged involvement in exchanging Rs 1.51 crore. ANI reported on Tuesday. 

News agency PTI also said that RBI official K Michael was arrested  in connection with seizure of Rs 5.70 crore in new currency notes. 

CNN-News18 reported that he was allegedly working through the State Bank of Mysore. 

RBI official K Michael and two others have been arrested. Rs 16 lakh has been recovered in the new currency notes, said the CNN News 18 report.

The Enforcement Directorate had earlier in the day seized Rs 93 lakh in new currency notes from seven middlemen in Bengaluru.

One of the ED officials presented himself as customer to these middlemen.

The ED is conducting further investigation to ascertain the links.

Since November 8, when Prime Minister Narendra Modi announced his government's move to demonetise high-denomination currency of Rs 500 and Rs 1000, many seizures of new notes have taken place. 

Recently, Rs 13.50 crore were seized by the Income Tax Department from a law firm in Delhi's Greater Kailash out of which Rs 2.61 crore were in new currency.

Earlier in the city, four bank officers were accused by the police of converting black money after Rs 5.7 crore cash was seized from a hawala operator.