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Zero tolerance for acts lowering RBI esteem (Relevant for GS Mains Paper II and III)

Statement by RBI Governor
Reserve Bank of India (RBI) Governor Urjit Patel said the central bank would not tolerate any act which lowered the esteem of the organisation after some of its employees were arrested by the Central Bureau of Investigation over charges of assisting in illegal exchange of withdrawn currency.

Following demonetisation, the RBI had opened a window for exchange of Rs. 500 and Rs. 1,000 notes which were withdrawn. In December, CBI arrested a few employees from RBI’s Bengaluru office for illegal exchange of currency worth over Rs. 3 crore. The investigative agency alleged that RBI employees who were deployed for the exchange of old notes, gave away new notes without following the rules.

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