PNB solely liable for fraud: Affected public sector banks tell govt

PSBs say will resolve payments issue bilaterally

The public sector banks (PSBs) affected by fraudulent letters of undertaking (LoUs) issued by Punjab National Bank (PNB) have told the government that PNB is wholly responsible for the alleged Rs 114 billion-scam related to group of companies led by Nirav Modi and Mehul Choksi.

A senior banker disputed the claim made by PNB that the fraud went undetected because the bank’s core banking system (CBS) was not integrated with the Society for Worldwide Inter-Bank Financial Telecommunication (SWIFT), a global financial messaging system that was used to instruct foreign branches of Indian banks to release money, amounting to Rs 114