‘RBI examining PNB fraud for enforcement action’

With multiple agencies probing the alleged ₹13,000-crore fraud at the State-run Punjab National Bank (PNB), the Reserve Bank of India (RBI) says it has conducted scrutiny and the matter is currently under examination for “enforcement action.”

Replying to an RTI query, the central bank also said it has been issuing necessary instructions to banks from time to time on a variety of issues of prudential supervisory concern, including the management of operational risks inherent in the functioning of banks.

Asked to provide details of action taken by the RBI after receiving input of suspected fraud at PNB and steps being taken to check such recurrences, the banking sector regulator said a confidential circular on time-bound implementation and strengthening of ‘SWIFT’— related operational controls was issued to public and private banks on February 20.

‘Further scrutiny’

“Further the scrutiny is conducted in the matter and is under examination for supervisory/enforcement action,” the RBI said in response to the RTI application filed by this PTI correspondent.

The PNB initially reported to the RBI on January 29 an incidence of fraud of ₹280 crore at its Brady House branch in Mumbai.

This information was subsequently updated and revised under the fraud reporting platform on multiple dates, the RBI said.