In recent alleged PNB Scam by

Date : Feb 16, 2018  RBI’s statement on fraud in Punjab National Bank

There have been reports in the media that in the wake of fraud involving a sum of USD 1.77 billion that has surfaced in Punjab National Bank (PNB), the Reserve Bank of India (RBI) has directed PNB to meet its commitments under the Letter of Undertaking (LOU) to other banks. RBI denies having given any such instructions.

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.

Jose J. Kattoor
Chief General Manager

Press Release: 2017-2018/2233

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Category : Fema / RBI (3547)
Tags : frauds (105) RBI Notifications (2012)

3 responses to “No instructed PNB to meet its commitments under LOU: RBI”

  1. MURALI rajagopalan says:

    Depositors money is at stake. Depositors have lost faith in banks

  2. JTR Nair says:

    A handful of managers can mismanage great sums because it is the taxpayers’ money. Ensure stringent punishment to whomsoever had erred on the right side. If this is the fruit of nationalisation of banks, privatisation would be better.

  3. dr vedula gopinath says:

    audit failed in PNB corporate governance failed.

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