The employees of Kamala Nagar branch of Syndicate Bank in Saroornagar were booked late on Sunday after the manager lodged a complaint with the police.
V. Mallesh, a clerk, handed over demonetized notes of Rs 1,000 and Rs 500 to cashier Radhika and collected equal amount in new currency notes of Rs 2,000. This incident happened on Saturday and the same was detected by the manager during verification.
Saroornagar police booked the duo for cheating and criminal breach of trust.
Following suspension by the bank manager, Mallesh brought back Rs 5.6 lakh. He told the higher-ups that he spent the remaining amount.
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The bank officials and police, however, don't believe that the money belonged to him.
Police were questioning him to know the source of demonetized notes.
Under the Reserve Bank of India (RBI) rules, a person can exchange maximum of Rs 4,000 demonetized notes by submitting Aadhar card or other identification proof.