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'Action against top bankers right, PNB MD should also keep away'

IANS  |  Chennai 

The central government's action against three top bankers in the country is a welcome move, said a top of All Employees' Association (AIBEA) on Tuesday.

He also said the of India (RBI), its nominees on the board of (PNB) cannot escape responsibility for the Letters of Understanding (LoU) scam.

"The Central government's decision to keep away Ananthasubramanian, and CEO of and the two in PNB from their banks is a welcome decision. It is good that the alleged wrongdoers are removed from the system," C.H. Venkatachalam, General Secretary, AIBEA told IANS on Tuesday.

He said taking moral responsibility, the current of PNB should also keep himself away from PNB till the probe into the alleged scam is over.

Ananthasubramanian earlier headed the PNB.

On Monday the (CBI) filed its first chargesheet in the Rs 13,000 crore scam in the (PNB).

"Similarly, the current of should also keep away from the bank on moral grounds till the probe into the alleged scam is over," Venkatachalam added.

He said the whole system at PNB has failed and the top management has to take responsibility given the magnitude of the fraud.

The CBI has chargesheeted Ananthasubramanian and 21 others, including 11 bank officials in connection with the fraud in PNB allegedly masterminded by diamantire and his uncle

Apart from Ananthasubramanian, the CBI has also charge sheeted two of PNB viz., and and (International Operations) Nehal Ahad.

Venkatachalam does not agree with the view that RBI was misled by PNB officials on the possible misuse of LoU.

"The RBI has its nominees on the board of PNB. Further, RBI also inspects the The RBI officials should also be brought under the net as they are culpable of serious negligence," Venkatachalam said.

He said the exposure of the sector to the gems and jewellery sector was huge and the RBI should have taken necessary action as the sector was not a priority sector.



(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Tue, May 15 2018. 11:12 IST