Lok Sabha Question No. 436 (UNSTARRED), answered on 2017-02-03
Subject: Money Credited in Bank Accounts
Ministry: FINANCE
Asked by: SUSHIL KUMAR SINGH

## GOVERNMENT OF INDIA MINISTRY OF FINANCE

## DEPARTMENT OF FINANCIAL SERVICES

## LOK SABHA UNSTARRED QUESTION NO. 436

TO BE ANSWERED ON THE 3 rd  February, 2017/ Magha 14, 1938 (SAKA)

## Money Credited in Bank Accounts

## QUESTION

## 436. SHRI SUSHIL KUMAR SINGH:

Will the Minister of FINANCE be pleased to state:

- (a) whether  the  Government  has  noticed  that  various  bank  account  holders  had  been  credited unknown amount through bank account without their knowledge;
- (b) if so, the number of such cases identified by the Government in the country, State/UT-wise; and
- (c) the steps taken/being taken by the Government in this regard?

## ANSWER

The Minister of State in the Ministry of Finance (SHRI SANTOSH KUMAR GANGWAR)

(a) to (c):  Reserve Bank of India (RBI) has advised the banks vide in circular Ref. No.DBS.CO.PPD / 4220/11.01.005/2016-17  dated  November  29,  2016  to  take  action  to  prevent  /  detect  /  contain  the malpractices or wrongdoing by staff in branches exchange / deposit of Specified Bank Notes (SBN). The banks were also advised vide the same circular to strengthen the internal / concurrent audit process in the bank  including  random  visits  /  scrutinies  so  as  to  detect  and  avoid  any  malpractice  in  the  exchange  / deposit of SBNs in the branches.  Further, on December 8, 2016 the banks were advised vide RBI DBS circular Ref. No.DBS.CO.PPD / 4480/11.01.005/2016-17 dated December 8, 2016 to track the complete trail of cash movements in large quantities so as to ensure that the extant instructions of Reserve Bank of India  are  followed  both  in  letter  and  spirit.  Further  a  list  of  22  action  points  (illustrative)also  was forwarded to  banks  with  an  advice  to  utilise  their  internal  audit  resources  to  monitor  the  position  and bring any anomalies noticed to their Audit Committee of the Board so as to ensure that necessary action is taken in all such cases, apart from reporting the summary of findings to RBI.

Banks  have  reported  14  cases  (branches)  where  bank  employees  have  been  found  involved  in 'irregular exchange transaction' of Specified Bank Note (SBN) during the phase of Demonetisation, Bank wise details are as follows:

|   Sl. No. | Bank Name            |   No. of branches (cases) reported | No. of employees suspended   |   Amount involved in Lakh |
|-----------|----------------------|------------------------------------|------------------------------|---------------------------|
|         1 | State Bank of Mysore |                                  2 | 4                            |                     190   |
|         2 | Bank of Maharashtra  |                                  2 | 5                            |                      54.9 |
|         3 | Dhanlaxmi Bank Ltd.  |                                  6 | 8                            |                    2267   |
|         4 | Axis Bank            |                                  3 | 3                            |                    4629.2 |
|         5 | Syndicate Bank       |                                  1 | Not mentioned                |                       6   |

Action  against  the  staff  for  malpractices  are  taken  by  the  respective  banks  as  per  their  Staff Accountability policy.

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