The suspensions come amid reports of Income Tax authorities conducting search and seizure in many places, including one at Bengaluru where Rs 5.7 crore cash in new currency notes was recovered from two businessmen.
Some cases have come to notice of officials involved in carrying out transactions which were irregular and violative of RBI's instructions, the Finance Ministry said in a statement.
"Action has been taken in such cases and 27 officials of various public sector banks have been placed under suspension and six officials have been transferred to non-sensitive posts," it said.
Following the decision of the government to demonetise of old Rs 500/1000 notes from midnight of November 8, 2016, people have been depositing the invalid notes into banks.
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The ministry further said that banks have done commendable work by putting in long hours of untiring effort in managing banking transactions.
In the biggest-ever seizure of cash in new currency, over Rs 5 crore even as the Income Tax department said it detected unaccounted income worth Rs 152 crore after it conducted searches in a dozen premises in Bengaluru and other locations.
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