The Finance Ministry has sought the Reserve Bank’s view on the lapses in the banking system that led to the ₹11,500 crore fraud at the Punjab National Bank and steps required to check recurrence of such incidents, sources said.
Department of Financial Services has written a letter to the RBI to explain the shortcomings in the system which let the fraud to go undetected for 7 years, they said.
The letter also seeks the regulator’s advice on what system and processes need to be updated so that such frauds are prevented, sources added.
Besides, the Ministry has also sought RBI’s view on failure of auditors to detect fraud that has been going on since 2011.
