RBI employee held for illegal money conversion in Bengaluru

RBI Deputy Governor SS Mundra has said the employee had been suspended and an investigation was on

RBI employee held for illegal money conversion in Bengaluru

A junior functionary of the Reserve Bank of India (RBI) has been arrested in Bengaluru for allegedly helping convert banned notes.

Earlier, NDTV had reported that the CBI had arrested K Micheal, a senior special assistant with the RBI Bengaluru, for being allegedly involved in helping convert black or untaxed money. More than Rs. 1.50 crores was involved in one case, the report said.

However, later RBI Deputy Governor SS Mundra

clarified that the person arrested in the case was a junior functionary, not a senior official.

He added that the employee had been suspended and an investigation was on. Action would be taken once details are known, he said.

The arrest comes at a time when frequent raids by ED officials and the police are leading to confiscation of huge sums of money in form of new currency notes from across the country.

On Monday, the Enforcement Directorate (ED) sleuths busted a money conversion racket and reportedly seized Rs.93 lakh in new currency notes in Bengaluru. Seven persons were arrested in the case.