PNB scam a lesson for banks to be more vigilant: Letter to BS

This is in reference to “Regulatory lessons” (February 20). Banks, irrespective of their nature and ownership, are playing a pivotal role in boosting economic growth and hence need protection from all vulnerabilities. The recent frauds are a big blow to the public sector banks at a time when they are struggling to deliver positive results. 

Despite the many challenges, banks have to accelerate the growth of the economy. Other than the banking system, no financial system is able to feed the financial requirements of the economy. Therefore, dependence on banks will continue. Frauds, irrespective of type and size, are not only draining the net worth of lenders but adversely affecting the credibility too. The government and the banking regulator need to look for swift action to recover the amount involved in the frauds and award punishment to the guilty. The recent frauds are a lesson to the banks and regulators to revisit the tech-based infrastructure, auditing, inspection, and vigilance mechanism to ensure a foolproof system for its regular customers as well as prevent such frauds in the future.

V S K Pillai 
Kottayam