Mumbai: The Reserve Bank today said it has already undertaken an assessment of
control systems at scam-hit Punjab National Bank and will take
"appropriate supervisory action".
The country's second largest
state-run lender has been rocked by a Rs 11,400-crore fraud allegedly
involving billionaire diamantaire Nirav Modi.
In a statement, the
central bank said it has already undertaken a supervisory assessment of
control systems in Punjab National Bank (PNB).
"The fraud in PNB
is a case of operational risk arising on account of delinquent
behaviour by one or more employees of the bank and failure of internal
controls.
"RBI has already undertaken a supervisory assessment of
control systems in PNB and will take appropriate supervisory action,"
it said.
The RBI also denied media reports that it had directed
PNB to meet its commitments under the letters of undertaking (LoUs) to
other banks.
State-owned PNB detected a USD 1.77 billion scam
where billionaire jeweller Nirav Modi allegedly acquired fraudulent
letters of undertaking (LoUs) from a branch in Mumbai to secure overseas
credit from other Indian lenders.
PTI
