RBI audit on Punjab National Bank found no lapse in three years, says govt

The Union government has questioned the role of the RBI on various occasions for failing to detect the PNB scam

The Reserve Bank of India’s (RBI’s) annual risk-based supervisory audit could not detect any lapses in government-owned Punjab National Bank (PNB) during the past three years, when the latter was being defrauded of Rs 140 billion through fake letters of undertaking. Minister of State for Finance Shiv Pratap Shukla said so in a written response on Tuesday to a query in the Rajya Sabha. 

The RBI has issued instructions to banks for putting in place and strengthening internal control systems, and on the scope of concurrent audit, Shukla added.

PNB had said earlier that the RBI conducted risk-based supervision of the bank