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PNB fraud: FinMin sets 15-day deadline for banks to fix operational gaps

Punjab National Bank disclosed a $2 billion fraud, stunning the country and putting the lack of supervisory oversight

Punjab National Bank

Punjab National Bank (PNB)

Reuters New Delhi
The finance ministry on Tuesday set a 15-day deadline for state banks to take pre-emptive action against operational and technical risks, following a $2 billon fraud at the country's second-biggest state lender.
Rajeev Kumar, secretary in the department of financial services, said in a tweet that state-run banks have 15 days to "take pre-emptive action and identify gaps/weaknesses" to tackle rising operational and technical risks.
Besides fixing "clear accountability" of senior officials, the banks must also learn from best practices and pinpoint strategies including technical solutions, Kumar added.
State-run Punjab National Bank (PNB) this month disclosed a $2 billion fraud, stunning the country and putting the lack of supervisory oversight by the central bank and auditors under the spotlight.

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First Published: Feb 27 2018 | 1:24 PM IST

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