Banks warn staff over unauthorised exchange of notes

Banks have issued alerts to their employees, warning them of serious action over unauthorised transactions following demonetisation of Rs 500 and Rs 1,000 currency notes in India.

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New Delhi, Nov 14: Banks have issued alerts to their employees, warning them of serious action over unauthorised transactions following demonetisation of Rs 500 and Rs 1,000 currency notes in India.

According to a senior public sector bank officer, complaints were received that some bankers were indulging in unfair means like not maintaining records of customers who come to deposit or exchange the phased-out currency notes.

Banks warn staff over unauthorised exchange of notes

Allegations were also made that some bank employees were entertaining people known to them and issuing them lower denomination currency notes many times over the limit without bothering to keep records.

This is in violation of the government instructions that banks can exchange cash up to Rs 4,000 per person once till November 24.

The central government demonetised Rs 500 and Rs 1,000 currency notes effective November 8 midnight leading to a sharp demand for smaller currency notes. Banks and ATMs saw huge queues of people trying to exchange or withdraw money across the country, with most coming back empty-handed.

Read More: Demonetisation: India is going to face serious recession, predicts economist Prabhat Patnaik

The government has placed restrictions on the amount that an individual can exchange or withdraw from the banks.

Employees of the public sector banks on Monday received instructions from higher ups that they need to enter the data of their customers in the banking software.

"Further, it was made very clear that the exchange of cash has to be recorded in CCTV and this footage has to be shared with RBI. It was also informed that any non-compliance would be dealt by RBI and (the) bank very seriously," read the note sent to the bank branches.

Some of the head offices of banks warned against this "dangerous" trend stating that serious action would be taken against the staff if they indulged in such activities.

"All the branches are instructed to sensitise their staff and desist from such practices. They should understand that they are diluting the government of India guidelines which attracts serious punishment," said the note sent by bank head offices to their branches.

Many other banks have also asked their branch offices to keep a strict vigil and maintain proper records of all the customers who exchange or deposit the now-spiked currency.

IANS

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