In a stringent measure to check Illegalities, the Narendra Modi Government has suspended 27 officials posted at various Public sector banks and transferred six officials over their alleged involvement in transactions violative of RBI instructions, (Reuters)

In a stringent measure to check Illegalities, the Narendra Modi Government has suspended 27 officials posted at various Public sector banks and transferred six officials over their alleged involvement in transactions violative of RBI instructions, Finance Ministry on Friday said. In a statement, the Finance Ministry said it won’t tolerate Illegalities and some officials were involved in irregular transactions. Action has been taken for executing transactions violating Reserve Bank of India rules, it said. Earlier, Reserve Bank had said it will monitor banks on issues relating to customer rights in five broad areas, a senior official said today. The areas on which the regulator will be conducting surveys and supervision at various banks are – right to privacy, right to fair treatment & transparency, fair and honest dealing, right to suitability and right to grievance redress and compensation.

The suspensions comes amid reports of Income Tax authorities conducting search and seizure places at many places, including one at Bengaluru where Rs 5.7 crore cash in new currency notes was recovered from two businessmen. Some cases have come to notice of officials involved in carrying out transactions which were irregular and violative of RBI’s instructions, the Finance Ministry said in a statement.”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. It also cautioned that while all efforts are being made to facilitate genuine transactions, “illegalities will not be tolerated and appropriate action will be taken against individuals involved in irregular and unauthorised activities”.

Following the decision of the government to demonetise of old Rs 500/1000 notes from midnight of November 8, 2016, people have been depositing the invalid notes into banks.