PNB fraud case: RBI says examining enforcement action

Reserve Bank of IndiaWith multiple agencies probing the alleged Rs 13000crore fraud at staterun Punjab National Bank the Reserve Bank of India RBI says it has conducted its scrutiny and the matter is currently under examination for enforcement action Replying to an RTI query the central bank also said it has been issuing necessary instructions to banks from time to time on a variety of issues of prudential supervisory concern including the management of operational risks inherent in the functioning of banksAsked to provide details of action taken by the RBI after receiving input of suspected fraud at PNB and steps being taken to check such recurrences the banking sector regulator said a confidential circular on timebound implementation and strengthening of SWIFT related operational controls was issued to public and private banks on February 20SWIFT Society for Worldwide Interbank Financial Telecommunications is a global messaging network used by financial institutions across the world to securely exchange information and instructions among themselves with the use of preassigned codes Further the scrutiny is conducted in the matter and is under examination for supervisoryenforcement action the RBI said in response to the RTI application filed by this PTI correspondentThe RBI however declined to share further details of the February 20 circular saying it was exempt from disclosure under section 8 1 a of the RTI Act 2005 since its disclosure may prejudicially affect the economic interest of the State The PNB initially reported to the RBI on January 29 an incidence of fraud of Rs 280 crore at its Brady House branch in Mumbai This information was subsequently updated and revised under the fraud reporting platform on multiple dates the RBI saidThe central bank however declined to share details of communication received from the PNB on the alleged fraudIn view of the ongoing investigations into the matter by the investigative authorities and third party information involved the information sought is exempt from disclosure the RBI said Among various agencies the CBI is looking into the over Rs 13000 crore alleged fraud in the PNB committed by billionaire jeweller Nirav Modi and his uncle and Gitanjali Gems promoter Mehul ChoksiThe Enforcement Directorate has also filed two money laundering cases against Modi and Choksi to probe the alleged fraud It has conducted a total of 251 countrywide searches in the case after it began the criminal probe against the accused in February resulting in seizure and attachment of diamond gold precious and semiprecious stones and other movable and immovable assetsAlso ReadPNB Scam ED Rushes To Gitanjali Gems To Check LocksCatch up on all the latest Mumbai news crime news current affairs and also a complete guide on Mumbai from food to things to do and events across the city here Also download the new midday Android and iOS apps to get latest updatesThis story has been sourced from a third party syndicated feed agencies Midday accepts no responsibility or liability for its dependability trustworthiness reliability and data of the text Midday managementmiddaycom reserves the sole right to alter delete or remove without notice the content in its absolute discretion for any reason whatsoever