On Wednesday, pictures went viral on social media of a few people standing behind a table stacked with bundles of notes.
The photograph showed Bangarpet MLA and Congress leader SN Narayan Swamy, district panchayat member Mahesh and bank president Byalahalli Govinda Gowda disbursing notes to people in a queue.
The photograph went viral with a note saying that bank officials and politicians were giving away Rs 500 and Rs 1,000 notes in an attempt to convert black money into white money after the Indian Government demonetized these currencies.
The programme however was held on Monday and bank president Byalahalli Govinda Gowda said the photos had even appeared in newspapers on Tuesday.
The Prime Ministerâ€™s announcement had come on Tuesday night.
From Prajavani paper on November 8th
"The programme was held on Monday. We gave cheques to people whose loans were approved and they encashed the cheques at the event," Govinda Gowda told The News Minute.
The bank, with an intention to help self-help groups, lends money at public programmes conducted in open places. In fact, the bank also gives the money to women at their doorstep.
Govinda says the photos were posted to defame the bank and the politicians.
DSP Kolar Anti-Corruption Bureau Mohan told TNM that initial investigation showed the pictures were from Monday, November 7.
â€śWe are waiting for the officials to furnish details about the money that was distributed. However, they have not given us an explanation as to why they flouted the RBI guidelines, which says that loans to SHGs should be given only through cheques,â€ťsaid Mohan.
The ACB however will raid the bank, added the officer to check if rules had been flouted while handing over cash to people.
Another WhatsApp forward caption accompanying the picture had read, â€śIn Bangarpet Kolar: today morning MLA and few politicians have give money to people in a meeting 3lakhs per head as a loan. Every 1 thought they are doing good work but actual fact is this these notes are no more valid and it has to be exchanged in bank by individuals by producing ID's, and they have to repay the loan with interest.. Pl circulate to all till it gets gov't attention [SIC].â€ť