Task force under PMO to probe cash crunch

The Central government is forming a multi-agency task force under the Prime Minister’s Office (PMO) to investigate the cash crunch in ATMs across the country. The special team has been asked to submit its report in the next 15 days.

Reports suggest that there is a feeling at the highest level that the hype around the currency shortage was created to mislead the nation. Sources said that it was a political conspiracy to mislead the nation, given that it is an election year.

The finance ministry has said that the reason behind the cash crunch will be known only after a detailed report on the issue is prepared. The ministry said that appropriate action will be taken depending on the outcome of the report.

An IB report available with Zee Business suggests that the Financial Intelligence Unit will act as a nodal investigating agency in the probe that is carried out by the multi-agency task force. Currently 2,600 branches of government and private banks are on the radar of the investigating agencies.

The report suggests the banks have been asked to submit report any suspicious transaction and activity to the FIU at the earliest. “Red flag indicators have been inserted in small and inactive bank accounts, to get information related to multiple withdrawals from these accounts,” the report says.

What SBI Says

• The SBI has said that the sudden surge in Currency in Circulation could be superficial.
• If hoarded notes are not back, the RBI will have to print more.