india

Updated: Nov 22, 2016 21:27 IST

With millions queueing up outside banks and ATMs across the country to exchange their defunct high-value notes, the Reserve Bank of India asked banks on Tuesday to take stern action against officials indulging in fraudulent practices while exchanging or depositing the invalid currency.

Banks have also been asked to remain prepared to provide details about the notes exchanged or deposited on short notice.

The Narendra Modi government announced on November 8 that Rs 500 and Rs 1,000 (Specified Bank Notes - SBNs) will cease to be legal tenders, describing the move as a crackdown on black money and corruption. But the decision sparked chaos, with people flocking to banks and ATMs to deposit of exchange the scrapped notes.

“It has been brought to our notice that at certain places, 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 stern action against officials involved in such activities,” it added.

The RBI asked banks that they should ensure strict compliance with the instructions issued with regard to exchange of SBNs as also 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 onwards.

They have to also maintain customer-wise and denomination wise record in respect of SBNs exchanged by walk-in and regular customers.

Banks should also be in readiness to provide these details at short notice, the RBI said.

Meanwhile, as many as 82,500 ATMs, which account for about 40% of cash vending machines in the country, have been recalibrated to dispense new high security currency notes of 500 and 2,000 rupees. Out of 2.2 lakh ATMs, 82,500 had been recalibrated till Monday evening.

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