CBI questioned former RBI deputy governor in PNB fraud case: source

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Reuters NEW DELHI
Last Updated : Apr 06 2018 | 5:55 PM IST

NEW DELHI (Reuters) - The Central Bureau of Investigation has questioned former deputy governor of the Reserve Bank of India, H.R. Khan, in relation to the $2 billion fraud at state-run Punjab National Bank, a government source told Reuters on Friday.

It was not immediately clear what was Khan questioned about. Khan was not immediately available for a comment.

Two jeweller groups have been accused of defrauding banks by raising loans from overseas branches of Indian lenders using nearly $2 billion of fraudulent guarantees issued by rogue Punjab National Bank staff at a Mumbai branch.

The fraud - which is being investigated by CBI and other enforcement agencies - is the biggest in the country's banking history.

Separately, four senior RBI officials were called on by investigators to help explain banking processes, sources familiar with the matter said on Thursday. A federal police source had said the agency was questioning them, without giving further details.

(Reporting by Nigam Prusty and Neha Dasgupta; Writing by Aditya Kalra; Editing by Sanjeev Miglani)

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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First Published: Apr 06 2018 | 5:48 PM IST

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