Put more safeguards: Letter to BS on Nirav Modi's fraud at PNB

With the mother of all bank scams showing the authorities in poor light it is imperative for the regulator and banks to put more safeguards in place

The revelation that all the 142 authorisations through Letters of Undertaking (LoU) were issued by Punjab National Bank to fund the companies owned by Nirav Modi in a matter of just two months — between March 1 and May 2 last year — nails the lie that the scam originated during the UPA era. The two national parties have resorted to a blame game ever since news of the scam broke out and news channels are busy taking one side or the other — which is unfortunate. With the mother of all bank scams showing the authorities in poor light, besides shaking the peoples’ faith and confidence in the banking system, it is imperative for the regulator and banks to put more safeguards in place and make concerted efforts to link SWIFT with the core banking system. 

N J Ravi Chander, Bengaluru