RBI to secretly inspect banks

CHANDIGARH: The RBI officials would soon start incognito visits to banks in the region to inspect proper compliance to directions issued in wake of demonetisation move initiated by the government a month ago.
The regional office has chal ked out a detailed plan for visits of its officials to different banks in Punjab, Haryana and Himachal Pradesh besides Chandigarh. Given the large number of branches, the RBI teams paying such visits, would chose the banks randomly .There are as many as 13,250 branches of public and private sector banks in the region, while the number of ATMs is 13,600.
Top officials in the regional office said the move is being initiated in the wake of reports and allegations that certain banks have been indulging in irregularities, particularly in cash disbursal.
“Our officials will be paying random visits to the branches in urban and rural areas. The objective is not to interfere in the functioning of banks but to ensure that there are no aberrations and customers are treated fairly ,“ said RBI regional director Nirmal Chand.
Besides all the controlling heads of the banks have been asked to monitor the situation and give their comments on the issues being raised by the customers, he added.
RBI officials said the gap between demand and supply of currency was likely to decrease in few days as a bigger supply of Rs 2000 and Rs 500 notes in new denominations is expected by next week. The supply is being provided in the region in bulk through IAF aircraft.
“The ratio of disbursal and deposit, which was almost at par earlier has come down drastically in one month in most banks. If a bank is disposing Rs 1crore in branches, the amount it's receiving as deposit in same period is now barely five to six lakh,“ said a senior RBI official.