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PNB fraud: Govt thinks RBI may be unable to ensure effective supervision?

PNB shares slid for a fourth straight day on Monday, closing 7.2% lower

Reuters  |  Mumbai/New Delhi 

India's government has said the $1.77 billion fraud at state-run Punjab National Bank was a "manifestation of supervisory failure" at the country's central bank, local media reported on Monday. In a letter to the Reserve Bank of India (RBI), the government said the failure to detect the fraud, the biggest ever in India's banking sector, raised questions about the central bank's "efficacy of supervision to detect and check systemic failure", NewsRise and other local media reported. "Either the framework designed by RBI to prevent and detect ...

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First Published: Mon, February 19 2018. 18:54 IST