The Central Bureau of Investigation (CBI) arrested two RBI officials from Bengaluru on Saturday for allegedly illegally exchanging demonetised old notes amounting to Rs 1.99 crore.

The arrest comes four days after the CBI arrested Michael, an RBI official, also from the same Bengaluru office for his alleged involvement in illegal currency exchange worth Rs 1.51 crore.

According to media reports, Senior Special Assistant Sadananda Naik and Special Assistant AK Kavin of Cash Department with RBI’s Bengaluru office were arrested for exchanging Rs 1.99 crore in violation of rules.

The CBI, however, reportedly believes that this is only the tip of the iceberg and that many more officials are suspected to be involved in facilitating the illegal exchange of demonetized currency for private individuals. 

The two accused and other unknown RBI officials allegedly entered into a criminal conspiracy with private individuals to convert their old notes into legal tender, says CBI.

The accused, who were to remit legal tenders in exchange of old ones, instead gave away the new currency to unknown RBI officials and others in exchange.

Meanwhile, a special CBI court extended the custody of KC Veerendra, a casino owner and a JD(S) politician, till December 31. He was arrested following the IT department found black money from his residence.