Deputy Governer of the Reserve Bank of India, S S Mundra on Tuesday reflected on the media reports about of the RBI staff being arrested on the charge of money laundering and clarified that it was a junior functionary, not a senior special assistant. Earlier in the day, K. Micheal, a senior special assistant of the Reserve Bank of India was arrested in Bengaluru for the alleged conversion if banned notes of Rs 500 and Rs 1000. According to reports, 8 others have also been arrested in a series of the raids by the Income Tax department, where new notes amounting to crores have been seized. Micheal was arrested by the Central Bureau of Investigation for allegedly converting black or untaxed money. According to NDTV, more than Rs 1.50 crores was involved in the case.
Here are 5 takeaways from Deputy governor S S Mundra’s statements about the arrest of the RBI official for money laundering:
1. Mundra confirmed that the arrested official was a junior functionary. He assured that actions would be taken once all the details were known about the incident. He spoke about media reports about bank staff being allegedly involved in some of the transactions noted in various branches of banks. Taking a firm stand, he said that from the beginning of the process, bank employees have made serious efforts and a majority of them have won appreciation.
2. He further said that in an operation of the magnitude of demonetisation there would always be certain elements that would have behaved otherwise than expected of them, although the RBI remained vigilant in their efforts.
3. He informed that the RBI had issued elaborate instructions to all bank managements to do the central bank checking. And whenever they find any inconsistency it should be pursued further through their internal audit mechanisms:, Mundra added.
4. Mundra said that the RBI supervisors had also been carrying out similar exercises om various data points of banks. And whenever any untoward transaction/action is noticed, due investigation would be done, he added.
5. Speaking of the raids on branches of Axis bank and a large amount of money that had been deposited into fake accounts, Mundra said that no action has yet been taken against the bank. As of now, no show cause notice has been issued to Axis Bank, he added.
RBI also issued to public through banks and branches, total in terms of quantity 21.8 billion pieces of notes of various denominations. Old notes of Rs 500 and Rs 1000 which have been returned back to RBI and currency chest, amounted to be 12.44 lakh crore as of Dec 10. Meanwhile, R, Gandhi of the RBI also requested the public to not hard the cash they have and spend it freely.