Rs 12.44 lakh crore demonetized notes back in the system: RBI

Reserve Bank of India, Deputy Governor R Gandhi stated that as of Tuesday, the central  bank has collected Rs 12.44 lakh crore at banks in demonetized notes. 

Gandhi said that the apex bank has issued 21.8 billion pieces of banknotes in various denominations since Prime Minister Narendra Modi's demonetization announcement. Out of this, 20.1 billion pieces belong to small denominations of Rs 10, 20, 50 and 100 while remaining notes have been issued in the higher denomination of Rs 2000 and Rs 500.

Deputy Governor SS Mundra said, "There have been media reports about some of transactions noticed in various bank branches, alleged involvement of bank staff. We have issued elaborate instructions to all bank managements to do the central data checking.Whenever any untoward transaction/action is noticed, due investigation would be done." Gandhi added to this and stated, "RBI supervisors are carrying out similar exercise on various data points of banks." 

The deputy governors also commented on Tuesday's case where CBI arrested RBI official K Micheal for his involvement in the illegal conversion of Rs 1.51 crore of old currency notes. "There has been a media report of one of the RBI staff at Bengaluru, let me clarify it was a junior functionary of RBI," said Gandhi. Mundra added, "The concerned employee has been suspended, we have instituted investigation. " Gandhi said, "Action will be taken once details are known."

Speaking on the recent case where bank officials at Axis Bank were caught in a money laundering act, Mundra said that as of now, no show cause notice has been issued to the Axis Bank.