Involvement of bank officials traced in money laundering, post demonestisation

Enforcement Directorate has intimated that bank employees have been found indulging in money laundering and other unfair practices during the phase of demonetisation and that the investigations have been initiated under the provisions of Prevention of Money Laundering Act (PMLA), 2002 against certain bank officials of various banks, post demonetisation. The act provides for attachment of property as well as prosecution of the accused involved in money laundering.

Further, as part of their staff accountability mechanisms, on the basis of prima facie involvement in irregularities relating to demonetisation, Public Sector Banks (PSBs) are so far reported to have placed 156 officials under suspension and transferred 41 officials. PSBs are also reported to have filed 26 cases with Police/CBI wherever criminal cases are involved.

With respect to Private Sector Banks, Reserve Bank of India (RBI) has informed that 11 employees have been placed under suspension where bank employees have been found involved in 'irregular exchange of transaction' of Specified Bank Note (SBN) during the phase of demonetisation. RBI has further informed that the banks have initiated internal investigation and complaints have been filed with police/CBI.

Minister of State in the Ministry of Finance, Santosh Kumar Gangwar, explained in Rajya Sabha on Tuesday, that whenever a complaint against a bank official is received and any irregularities are found, banks initiate action as per their extant rules and subsequent punishment is awarded to the delinquent employees based on the seriousness of the fault committed as per a bank's disciplinary rules.