RBI responds on PNB Scam

New Delhi Feb 17: A Bigger scam has been identified in recent days and the Massive default of loan of Rs 11400 Cr by Jeweler Nirav Modi to Punjab National bank has shaken the nation. Currently, many agencies are investigating the case.

The central bank RBI has responded on the issue and has said that "it has already undertaken an assessment of control systems at scam-hit Punjab National Bank and will take appropriate supervisory action".

The central bank said that "it has already undertaken a supervisory assessment of control systems in Punjab National Bank (PNB).The fraud in PNB is a case of operational risk arising on account of delinquent behavior by one or more employees of the bank and failure of internal controls."

RBI had also denied reports of central bank directing PNB to meet its commitments under the letters of undertaking (LoUs) to other banks.