PNB scam: Fix operational gaps in 15 days, Finance Ministry tells state-run banks

Rajeev Kumar, Secretary, Department of Financial Services. Photograph:( ANI )

Reuters New Delhi, Delhi, India Feb 27, 2018, 07.54 AM (IST)

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 billion fraud at the country's second-biggest state lender.

Rajeev Kumar, the 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.