They have also been asked to come up with "pre-emptive" action plan within a fortnight to combat rising operational and technical risks, and assign clear accountability to senior functionaries.
These directions come amid Punjab National Bank reporting Rs 12,700 crore fraud through the misuse of letters of undertaking (LoUs) allegedly by billionaire jeweller Nirav Modi and associates. Besides, other frauds involving jewellers and other companies too have surfaced in quick succession recently, spurring the ministry into action.
Rs 50Cr for possible fraud," the secretary said in the tweet.
PSBs have also been asked to involve Enforcement Directorate (ED)/ Directorate of Revenue Intelligence (DRI) for violations of PMLA, FEMA or Export Import norms.
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Also, banks will have to seek borrower status report from Central Economic Intelligence Bureau (CEIB) on the account turning to a non-performing asset (NPA) or bad loan and CEIB will have to revert in a week.
In this context, a senior official pointed out that the mere fact of referring NPA to National Company Law Tribunal (NCLT) will not absolve either the banks or the promoters and companies of wrong doings.
The 12 large NPA accounts referred to NCLT at the behest of Reserve Bank of India have outstanding loans of Rs 1.75 lakh crore.
In the second list, RBI identified 29 large NPA accounts and asked banks to resolve them under the Insolvency and Bankruptcy Code (IBC).
Executive Directors and chief technology officers (CTOs) of PSBs have been asked to prepare a blueprint to enhance preparedness for combating increasing risks, Kumar said in another tweet.
"15 days deadline for PSBs to take pre-emptive action and identify gaps/weakness to gear up for rising Ops and Tech risks; To learn from best practices and pinpoint strategies including tech solutions; clear accountability of senior functionaries," he said.
The PSBs will have to come out with comparative assessment of their banks' operational risk management practices with best practices and "identify gaps and areas for improvement", he said.
The Boards of banks have been asked to assign clear accountability to senior functionaries for implementation and compliance of the report.
The 15-day deadline to PSBs comes as part of government's ambitious reform agenda, under the rubric of an Enhanced Access and Service Excellence (EASE) programme.
Indian Banks' Association (IBA) would soon be convening a meeting of the of banks to prepare an action plan, sources said, adding that the large lenders would be asked to handhold smaller banks to making the system foolproof.
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