India asks state banks to fix operational gaps in 15 days after $2 billion fraud


Reuters | Published: February 27, 2018 14:27:42 | Updated: February 28, 2018 12:29:42


A man tries to remove a notice pasted on the wall of a Punjab National Bank branch after it was sealed by India’s federal police in Mumbai, India, on February 19, 2018. - Reuters photo

India’s 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.

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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