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.

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.

Earlier this month, Punjab National Bank disclosed a Rs 11,400 crore fraud. (Reuters File Photo)

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.