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Govt accuses banks of cash diversion
State government has lodged a complaint with the Reserve Bank of India (RBI) against a section of banks, which include scheduled and private banks, accusing them of diversion of money meant for dispensing to general public.
Hyderabad: State government has lodged a complaint with the Reserve Bank of India (RBI) against a section of banks, which include scheduled and private banks, accusing them of diversion of money meant for dispensing to general public.
The complaint has specifically said the misdemeanour on the part of the bankers led to non-availability of small denomination notes. Based on the complaints received from different quarters and the reports the government had received from State Intelligence, the Finance Department brought to the notice of the RBI that some bank branches had diverted currency to the hoarders on commission and created artificial scarcity of currency notes.
As result, the availability of currency notes of Rs 500, Rs 100 and Rs 50 denomination had a become a big problem. The government also explained to the RBI how the currency was diverted. Most of the bank officials stopped distributing small currency notes to the general public and supplied them to commercial establishments in exchange for Rs 2000 notes.
The hoarders are charging Rs 200 to Rs 300 for exchange of the high- valued note. In some cases, bank officials resorted to conversion of black money into white by taking huge commissions from the non-tax payers, the report said.
Though Central Intelligence agencies cracked down on some corrupt bank officials, the menace of hoarding currency notes is still rampant in the State, particularly in Hyderabad, official sources said. However, the officials refused to elaborate on it. The government also urged the RBI to ensure transparency in money distribution and curb diversion of money immediately.
Meanwhile, the State has got a temporary relief from the acute shortage of currency notes. The RBI made available around Rs 1,100 crore, most of them in small denomination notes like Rs 100 and Rs 50 on Monday. The currency notes deposited in the bank chests will be distributed to customers from Tuesday. In all, the State had received Rs 15,000 crore from RBI after demonetisation of high-value notes.
By Patan Afzal Babu
