Bengaluru, Dec 7 (PTI): CBI today arrested a senior manager of Central Bank of India and two owners of a firm in Bengaluru for allegedly violating RBI guidelines on scraping of Rs 500 and Rs 1,000 notes.

The agency had registered an FIR against senior manager and branch head of Central Bank of India's Basavanagudi branch S Lakshimnarayana and Directors of Omkar Parimal Mandir -- S Gopal and Ashwin G Sunkur -- yesterday and carried out searches at various places.

The three were called for questioning at the CBI office in Bengaluru this morning and placed under arrest after they allegedly failed to answer many of the questions, the CBI said here.

The agency has booked them under sections of IPC dealing with criminal conspiracy and cheating as well as abuse of official position under the Prevention of Corruption Act.

During the searches carried out yesterday at Bengaluru which included the residence of bank officials and private persons, the agency claimed to have recovered incriminating documents, including bank vouchers, counterfoils, DDs, property documents, hard disks and Rs 5,91,500 cash in old Rs 500 and Rs 1,000 notes.

In its FIR filed in the designated CBI court in Bengaluru, the CBI alleged that from November 15 to November 18, the bank manager had issued 149 demand drafts for amounts less than Rs 50,000 in favour of a Pune-based finance company in violation of RBI guidelines.

The total value of the demand drafts was Rs 71 lakh which the branch manager accepted in demonetised notes from the owners of the company, the agency said.

The amount was staggered and 149 DDs were issued for less than Rs 50,000 which was allegedly done by the accused fraudulently to convert the demonetised notes.

The firm's owners subsequently cancelled the drafts and encashed the amount thereby clandestinely converting old notes into valid bills, the CBI alleged.