National News
After $2 Billion Fraud, 15-Day Deadline For State-Owned Banks to Fix Operational Gaps
Rajeev Kumar, secretary in the department of financial services, said in a tweet that state-run banks have 15 days to "take pre-emptive action and identify gaps/weaknesses" to tackle rising operational and technical risks
NEW DELHI: The finance ministry today set a 15-day deadline for state banks to take pre-emptive action against operational and technical risks, following a $2 billion fraud at Punjab National Bank (PNB), India’s second-biggest state lender.
Rajeev Kumar, secretary in the department of financial services, said in a tweet that state-run banks have 15 days to “take pre-emptive action and identify gaps/weaknesses” to tackle rising operational and technical risks.
Besides fixing “clear accountability” of senior officials, the banks must also learn from best practices and pinpoint strategies including technical solutions, Mr Kumar added.
The PNB disclosed a $2 billion fraud earlier this month, stunning the country and putting the lack of supervisory oversight by the central bank and auditors under the spotlight.
