Crack whip on officials linked to note change: RBI to banks

The Rs 500 and Rs 1,000 (Specified Bank Notes - SBNs) were demonetised from November 9, 2016 in a crackdown on black money. “It has been brought to our notice that at certain places, a few bank branch officials, in connivance with some miscreants, are indulging in fraudulent practices while exchanging SBNs in cash/ accepting SBN deposits into account,” said the Reserve Bank of India. “Banks are, therefore, advised to ensure that such fraudulent practices are stopped forthwith through enhanced vigilance and take action against officials involved in such activities,” it added. RBI asked banks that they should ensure strict compliance with the instructions issued with regards to exchange of SBNs and deposit of such notes into the accounts of their customers. Earlier, the banks were asked to maintain denomination wise details of such notes and aggregate value of non-SBN note deposited in the account of each deposit or loan customer from November 9, 2016 onwards. 

They must also maintain customer-wise and denomination wise record in respect of SBNs exchanged by walk-in and regular customers. Banks should also be prepared to provide these details at short notice, RBI said. Meanwhile, as many as 82,500 ATMs, which account for about 40 per cent of cash vending machines in the country, have been recalibrated to dispense new high security currency notes of Rs 500 and Rs 2,000.

Spend, don’t hoard: Bank officials

Queues of customers waiting to exchange/withdraw money, and the money invariably running out, leading to fights between the people and the bank officials, is a common sight, even a fortnight after the demonetisation.

The manager of a nationalised bank in Teynampet said that the amount of cash received per day has been halved. “We had stated a requirement of Rs 45 lakh but we only received Rs. 20 lakh, which is not enough to meet the needs of the people. Due to f this, we have not been exchanging the notes for the last two days. Also, the notes given to us are only the new Rs. 2000 ones. We don’t have enough small notes as the new 500 notes too have not been circulated yet, which is a huge hassle,” said the official. “As there is a currency crunch, people are afraid to spend the cash, so money is not coming back into the system. People should start spending and circulating the cash into the system,” said the general manager of another nationalised bank.