Mumbai: The Finance Ministry has directed the PSBs to probe all NPA accounts of over Rs 50 crore for possible fraud and accordingly report the cases to CBI. State-owned banks, with combined gross NPA of about Rs 8.5 lakh crore,
have been asked by the ministry to go in for prompt fraud identification and take action within prescribed deadlines. Stung by the largest banking fraud at PNB, the ministry has also asked all public-sector banks to come out with “pre-emptive” action plan to combat rising operational and technical risks, and assign clear accountability to senior functionaries.
The ministry has also set a 15-day deadline for banks to take action to improve their oversight of operational and technological risks. They have also been directed to refer all cases of fraud to the Central Bureau of Investigation, and keep agencies like the Enforcement Directorate and the DRI informed. Last week, Union Finance Minister Arun Jaitley had decried a “lack of ethics” among sections of Indian business. He had also criticised inadequate oversight by auditors and regulators.
