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After PNB fraud, state banks given 15 days to fix operational gaps

State-run banks have been given 15 days to “take pre-emptive action and identify gaps/weaknesses” to tackle rising operational and technical risks.

business Updated: Feb 27, 2018 15:35 IST
Reuters
Reuters
Reuters, New Delhi
Earlier this month, Punjab National Bank disclosed a Rs 11,400 crore fraud.
Earlier this month, Punjab National Bank disclosed a Rs 11,400 crore fraud.(Reuters File Photo)
         

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.

First Published: Feb 27, 2018 14:21 IST