Indian banks given 15 days to protect themselves against fraud risks

28 Feb 18

The government of India has set a 15-day deadline for state banks to take preventive measures against operational and technical risks, after a $2bn fraud at one of the country’s biggest state lenders.

Rajeev Kumar, secretary in the department of financial services, said in a tweet that the banks run by the state have 15 days “to take pre-emptive action and identify gaps/weaknesses” for rising operational and technical risks.

State-run Punjab National Bank disclosed this month a $2bn fraud, raising concerns about the lack of supervisory oversight by the central bank and auditors.

Kumar added that banks should learn from best practices and find strategies, including technical solutions, to address the gaps.

Earlier this month, the state-run PNB said it had detected unauthorised transactions of about $1.77bn, but said on Monday that the amount could go up by about $204m, the Times of India reported.

 

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