Banks staff had worked extra hours to handle the increased volume of work due to demonetisation of bank notes of Rs. 500 and Rs.1000 with effect from November 8, 2016.
Whenever complaint against a bank official(s) is received and any irregularities are found or observed on the part of Bank’s official(s), the Banks initiate action as per their extant rules and commensurate punishment is awarded to the delinquent employees based on the seriousness of the wrong doings as per Bank’s disciplinary rules.
It came to the notice of RBI that certain depositors are hesitating to deposit their monies into bank accounts in view of the current limits on cash withdrawals from accounts. As it was impeding the active circulation of currency notes, it was decided, to allow withdrawals of deposits made in current legal tender notes on or after November 29, 2016, beyond the current limits.
Higher withdrawal limits have been allowed in following conditions:
Deposits of Specified bank Notes into all types of deposit/loan accounts of banks (except DCCBs) have been allowed subject to CTR/STR reporting.
Only Urban Co-operative Banks and State Co-operative Banks have been authorized to accept the deposit/ repayment of the loan in old currency notes.
Various steps taken by the RBI to ease problems of public in rural and urban areas are as under:-
The overall economic growth of the Indian economy is dependent on many factors that, inter-alia, include the rate of capital formation and savings, utilization of technology, availability of infrastructure, efficiency of resource allocation, quality of institutions, governance and the policy framework in place, money supply and degree of financial development. Further, the situation after the cancellation of legal tender character of old denomination banknotes is being regularly monitored in the Government.
Diplomatic Missions have written to convey their appreciation for the Government”s recent effort to make our economy more transparent and as a move that will also have a positive impact on FDI.
Reserve Bank of India (RBI) and the Banks have been advised to step up the supply of cash to the public. The availability of cash and issuance of cash to bank branches and Post Offices on a daily basis is being constantly monitored and necessary rebalancing is being done for more efficient allocation of banknotes of requisite denominations between different areas. Further, on the basis of feedback/suggestions received from various quarters, Government has taken various steps to ameliorate the inconvenience caused to the public, the information regarding which is available at finmin.nic.in.
About Rs. 370 crores of cash and jewellery has been seized by the Income Tax Department since the cancellation of legal tender character of old high denomination banknotes. The total undisclosed income admitted before the Department is more than Rs. 2500 cores. Close coordination is being maintained with other enforcement agencies for action against the offenders as an on-going process which includes searches, surveys, enquiries, tax assessment, levy of penalties and filing of prosecution complaints in criminal courts, wherever applicable.
This was stated by Shri Santosh Kumar Gangwar, Minister of State in the Ministry of Finance in written reply to a question in Lok Sabha today.
Source- Press Information Bureau, Government of India, Ministry of Finance, 16-December-2016