27 bank officials suspended over post-demonetisation deals

The finance ministry on Friday said it has suspended 27 officials of various public sector banks for allegedly indulging in illegal transactions since the demonetisation of Rs500 and Rs1,000 currency notes on 8 November.

The ministry said while banks have done ''commendable'' work by ''putting in long hours of untiring effort in managing banking transactions'', it has come across cases where bank officials have carried out transactions that violate RBI instructions.

''Action has been taken in such cases and 27 officials of various public sector banks have been placed under suspension and 6 officials have been transferred to non-sensitive posts,'' said a statement.

''While all efforts are being made to facilitate genuine transactions, illegalities will not be tolerated and appropriate action will be taken against individuals involved in irregular and unauthorised activities,'' it added.

The finance ministry on Friday also warned that those indulging or colluding in money laundering activities and converting their ill-gotten money into white will not be spared as law-enforcement agencies are already chasing such trails. ''Those indulging in or colluding with money laundering or converting black money into white will not be spared,'' Department of Economic Affairs Secretary Shaktikanta Das said in a tweet.

Last month finance minister Arun Jaitley too had said law enforcement agencies will keep a close watch on illegal currency changers, converting the scrapped Rs500 and Rs1,000 notes to legal tender and those who are investing their money in gold and bullion to hide unaccounted wealth.