NEW DELHI: The government has suspended or transferred more than a hundred employees of banks for mismanagement during the demonetisation drive.While some employees from state-run lenders have been suspended, others have been transferred, a senior government official told ET.“Investigations are on in some cases and if they are found to be guilty, they will be removed from their jobs,” said the official, who did not wish to be identified.Investigating agencies have also zeroed in on some of the most common methods used to launder money, the official said.The government had on November 8 announced withdrawal of Rs 500 and Rs 1,000 notes as legal tender, rendering worthless nearly 86 per cent of the total currency in circulation.“In some cases it was found that an account was opened without fulfilling the know your customer (KYC) norms and cash (in old currency) was deposited in these accounts, only to close the account the next day, and a demand draft was issued for the amount deposited,” said another official aware of the investigations.The other method, which was also used in connivance with bank officials, was to use the suspense account of the bank. Suspense account is an account where transactions, both deposits and withdrawals, are kept until they are classified. “The demonetised currency was deposited in the suspense accounts and later the amount was transferred into various accounts,” the second official said.The other common methods which were used across banks and branches were loan foreclosures, backdated fixed deposits and new salary accounts opened for a firm. “The misuse of Jan Dhan accounts came down drastically after the first week, as it was highlighted the most and both banks and agencies were quick to react,” said a bank official.“Also, the impact of exchanging old demonetised notes for new currency was put to check by swift action from the government.”On November 25, the government revoked the cash exchange facility under which the demonetised Rs 500 and Rs 1,000 notes were allowed to be exchanged for new currency. This was announced a week after the government curtailed the exchange limit from Rs 4,500 to Rs 2,000 a day.Banks are also proactively looking into large deposits or withdrawal done by their staff in their accounts.“If there have been some large deposits made in an employee’s account after demonetisation was announced, explanation has been sought,” said a senior official of State Bank of India , the country’s largest bank.