Bank Union wants CBI probe into PNB fraud, alleges RBI failed as regulator
All
India Bank Employees Association (AIBEA) has demanded a CBI probe
into the PNB
fraud case
and hasalso sought a parliamentary probe to rid banks of
‘NIMO’nia ailments in future. It has asked the Centre to keep the
top management away from PNB until the probe is complete.At a time
when banks are
facing the problem of huge irrecoverable bad loans and getting into
losses due to provisions to be made from the profits earned, the PNB
– NIMO fraud has exposed the increasing trend of corporate loot of
banks, said C H Venkatachalam, general secretary, "Attempts are
being made to dilute the magnitude of the fraud", he alleged.
Action
against two employees at the lower level gives an impression that
only the lower level officials and staff are responsible, he
added."It is very strange that the top management and Board
members of the Banks are
not covered by any Disciplinary and Conduct Regulations though they
take very vital decisions.
They
are also to be covered by the same set of rules like other officers
of the Banks. The
government should look into this aspect also," said
Venktachalam.
He
said the fraud has also raised a number of questions on technology
issues, supervision, monitoring, audit, internal control, etc.
besides role of RBI in the whole episode. AIBEA
also questioned how is it that the RBI, which carries out a regular
audit of the banks, did not smell the fraud, despite the number of
years and the volume of money involved?
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