RBI Official Arrested For Allegedly Exchanging Rs 1.51 Crore In Scrapped Currency Notes

The Central Bureau of Investigation (CBI) today (13 December) arrested a Senior Special Assistant of the Reserve Bank of India (RBI) in Bengaluru for his alleged involvement in currency exchange. The official K Michael, according to this News18 report, was involved in exchanging the now-defunct Rs 500 and Rs 1,000 currency notes worth Rs 1.51 crore. He was said to be trying to obtain new currency notes through the State Bank of Mysore in Bengaluru.

Two others were also arrested along with Michael on charges of money laundering. Unaccountable cash of Rs 16 lakh in new currency notes was recovered from their possession. The CBI has registered a case against officials from four banks, State Bank of India, State Bank of Mysore, ICICI Bank and Kotak Mahindra Bank.

In another case, the CBI yesterday (12 December) arrested Janata Dal (Secular) member and alleged hawala operator K C Veerendra two days after the Income Tax department seized Rs 5.7 crore in new currency from a secret chamber in a bathroom in his house.  The CBI had also registered an FIR against State Bank of India, State Bank of Mysore, Kotak Mahindra Bank, and ICICI Bank, accusing them of diverting new currency to private individuals. The FIR did not name any individual officials from any of these banks.