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RBI official changed notes to help his friend

The arrest of the Reserve Bank of India official in Bengaluru on Tuesday has now brought to light the fact that even the central banking institution of the country is not exempt.

Published: 14th December 2016 03:17 AM  |   Last Updated: 14th December 2016 03:17 AM   |  A+A-

By Express News Service

BENGALURU: The arrest of the Reserve Bank of India official in Bengaluru on Tuesday has now brought to light the fact that even the central banking institution of the country is not exempt from the scam of illegally converting demonetised notes. After the arrest it was also revealed that officials and agents had started this scam as soon as Prime Minister Narendra Modi declared the demonetisation move on November 8.

Michael K, the suspended RBI official, was allegedly in touch with Parashiva Murthy, head cashier of State Bank of Mysore, Kollegal in Chamarajanagar district, against whom the CBI had registered an FIR on December 6. 

According to sources, Michael took advantage of the cash crunch with Murthy’s help. Knowing that Murthy was exchanging the old denomination notes for a commission, Michael approached him to convert `6 lakh for a friend.

Sources added that Murthy was exchanging the demonetised notes only with `100 denomination notes. A source said, “Murthy is the main accused in this case whereas Michael supported the cause for commission. It was Murthy who misused his position as custodian of the currency chest and exchanged demonetised notes with valid notes for around `1.51 crore between November 10 and 13.” However, CBI is yet to ascertain how much commission he took.



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