"The Central government's decision to keep away Ananthasubramanian, Managing Director and CEO of Allahabad Bank and the two Executive Directors 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 Managing Director of PNB should also keep himself away from PNB till the probe into the alleged scam is over.
Ananthasubramanian earlier headed the PNB.
He said the whole system at PNB has failed and the top management has to take responsibility given the magnitude of the fraud.
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 bank branches. 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 banking 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.)