Demonetisation: Not enough cash for state-run banks from RBI, alleges staff union

The Reserve Bank of India is not giving enough cash to public sector banks, says All India Bank Employees Association, Vice-President, Vishwas Utagi.

Moneycontrol.com December 14, 2016 19:37:32 IST
Demonetisation: Not enough cash for state-run banks from RBI, alleges staff union

By Himadri Buch

The Reserve Bank of India is not giving enough cash to public sector banks, says All India Bank Employees Association, Vice-President, Vishwas Utagi.

“The RBI must declare transparently the total money sent to PSU banks that have the largest network in India,” Utagi told moneycontrol.com.

Utagi alleged that top bureaucrats were influencing the RBI to send more cash to private sector banks.

Demonetisation Not enough cash for staterun banks from RBI alleges staff union

Representational image. AFP

Nearly five weeks into the demonetisation drive, there are still long queues outside many branches as banks grapple with a shortage of currency notes.

What is fueling public outrage is that Income Tax and Enforcement Directorate raids at many places have unearthed cash hoards in new currency notes, pointing to money laundering with the connivance of bank officials.

Axis Bank said it has decided to suspend 19 employees after it emerged that Rs 100 crore was deposited in 40 fake accounts.

Uttagi says the diversion of new currency notes from banks cannot happen without the complicity of top officials.

"Only those who are having control of the cash chest can only facilitate the exchange of notes (new notes for old)," Utagi said.

"Junior level employees cannot do this as the money which comes in the system gets recorded in the computer so there is no question of mischief at the ground level," he said.

A mail sent to the RBI remained unanswered.

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