According to reports, the RBI official named K Michael was arrested by the CBI for his involvement in exchanging Rs 1.51 crore.
K Micheal allegedly converted the amount in connivance with a State Bank of Mysore bank branch.
Earlier, the Enforcement Directorate arrested eight middlemen allegedly involved in money laundering and seized Rs 93 lakh in new currency.
ED officials had laid the trap and approached as customers to these middlemen. They found that the middlemen had links with bank officials.