Punjab National Bank investigating How the $1.8 billion PNB fraud went unnoticed

Punjab National Bank investigating  How the $1.8 billion PNB fraud went unnoticed

The Punjab National bank says it is still investigating how the fraud happened. How they were able to do so and go undetected for so long. The accounts given by current and former executives who spoke to Reuters suggest an answer as simple as it is alarming: no one was paying attention.

The still unraveling story which includes the alleged misuse of the SWIFT interbank messaging system and incomplete ledger entries - points to a breakdown in checks, balances and standard banking practice.

According to court documents and interviews with bank executives - The branch deputy manager Gokulnath  Shetty did so using the bank's SWIFT system to log in with passwords that allowed him and in at least some instances a more junior official, to serve as both the person who sent messages and as the person who reviewed them for approval.

The bank union raises serious questions about ongoing PNB fraud case and the functioning of the RBI in its letter.

According to All India Bank Employees’ Association (AIBEA) only lower level officials were involved. The government should step into the ongoing PNB fraud case and keep out top management and officials until the probe is complete and accountability fixed, bank union AIBEA demanded today.

All India Bank Employees’ Association (AIBEA) said in a strongly-worded letter issued that “What is sauce for the goose must be for the gander too. While we do not support the wrong-doers at the lower level, the impression is given that only the lower level officials and staff are responsible, so there shouldn't be a haste and hurry to suspend them?”.

“It will be prudent for the government to step in and keep out the entire top management and higher officials from the bank until the probe is completed and accountability is fixed".