Demonetisation: Govt targets bankers involved in money laundering

Some official allegedly involved in converting old currency into new notes; finance ministry asks for a detailed report

Employees of state-run and private sector banks have come under the scanner of finance ministry over alleged irregularities in converting old currency into new notes post the demonetisation drive.

The finance ministry has asked banks to look into the matter and submit a report to the ministry in this regard. “We are receiving several complaints against bank officials and we are referring these cases to the concerned investigative agencies, said a senior revenue official on condition of anonymity.

When asked about this development and on bank officials' role in illegally changing demonetised currency into new notes, Revenue Secretary Hasmukh Adhia said, “In every organisation there will be black sheep, so we are taking action against all those who are violating the norms and helping black money hoarders to convert old notes into new notes,” Adhia told reporters on the sidelines of the two-day meeting of revenue heads of Brics nations (Brazil, Russia, India, China and South Africa).  

The move comes after the Central Bureau of Investigation (CBI) and Enforcement Directorate (ED) cracked down on bank officials since note ban to curb black money conversions into new notes. CBI on Tuesday had registered a case against senior bank officials and two others in Bengaluru for allegedly violating rules to convert unaccounted money into new currency.

Last week, the ED had arrested two managers of Axis Bank’s Kashmiri Gate branch in New Delhi and recovered gold bars weighing more than 3 kg. Both were sent to ED custody till December 12. In the case, ED had alleged that both were involved in aiding black money transactions.

Post this, both agencies are keeping a close eye on several bank accounts of various people and traders who have made suspicious transactions during the period.

Meanwhile, the Income Tax department too had carried out action in this case, surveyed the bank branch and later searched the residential premises of the two bank officials.