The CBI on Tuesday arrested K Michael, senior special assistant, Issue Department, RBI, on the charge of helping a friend convert demonetised high denomination notes to the tune of Rs. 6 lakh into Rs. 100 denominations at State Bank of Mysore, Kollegala, without proper documentation.
On December 6, the CBI registered a case against Parashivamurthy, senior cashier of the bank, for allegedly giving Rs. 1.51 crore of new currency in exchange of old demonetised notes without proper documentation. A probe into the case revealed the involvement of Mr. Michael.
CBI officials said the SBM, Kollegala is a currency chest from where notes are issued to SBM branches in the locality.
Mr. Michael went to SBM, Kollegala, to refill currency on November 8 when the demonetisation was announced. Soon, he helped one of his friends to exchange the demonetised notes for Rs. 100 notes at the bank without any documentation in conspiracy with Mr. Prashivamurthy.
