India asks state banks to act on operational gaps after massive fraud

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 billion-US dollar fraud at the country’s second-biggest state lender.

Rajeev Kumar, secretary of 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-US dollar fraud, stunning the country and putting the lack of supervisory oversight by the central bank and auditors under the spotlight.

(REUTERS)