Bengaluru: Bank managers, middlemen strike gold'?

Bengaluru: Even as the common man is struggling to lay his hands on cash or to exchange old currency for the new, senior managers of banks and middlemen are striking gold as a liquidity crisis hits the market. Managers of a few nationalised banks and cooperative societies have struck deals with middlemen to get hold of devalued currencies and to convert them for new and legal tender for commissions up to 20-30 per cent, sources said.

“Deals are being struck in some remote places of Bengaluru Rural and other parts of the state. It is also happening in Tamil Nadu. This is also one of the reasons why some banks are running out of cash fast,” they said.

“A bank manager places an indent for certain amount of cash with the Reserve Bank of India, which releases the cash either matching or close to the indented request. Some unscrupulous branch managers strike a deal with middlemen and exchange legal tender with the devalued currency for a hefty cut. If the deal is struck for 30 per cent, the managers get 15 per cent, while the remaining goes to the agents,” the sources said.

Transactions are done by those closely associated with the bank managers. Middlemen have stocked new currency and are scouting for customers with demonitised currencies.