Central Vigilance Commissioner K V Chowdary said the Reserve Bank of India (RBI) did not audit the Punjab National Bank (PNB) branch that sanctioned the loan defaulted by jeweller Nirav Modi and Gitanjali Gems promoter Mehul Choksi. His comments comes days after the finance minister Arun Jaitely remark that regulators, auditors decide the rules of the game and have to have a third eye which is to be perpetually open.<\/p>\n
Chowdary clarified that RBI did not conduct the audit at PNB since it had switched over from a periodic audit to a \u201crisk-based\u201d audit which is conducted when there is a financial risk involved. The anti-corruption watchdog also stressed on the need to put a more robust auditing system to prevent such large scale frauds at the banks. The bank fraud perpetrated at the Mumbai branch of PNB remain undetected despite Modi availing different credit facilities between 2013 and 2017.<\/p>\n
While the CBI had the regulatory responsibility for the banking sector but any lack of integrity would be looked at by the Central Vigilance Commission. \u201cTo determine risk, they must have some parameters. Based on that they would have done that .there was no apparent audit by the RBI during this period ,\u201d Chowdary said.<\/p>\n
Chowdary pointed out that the RBI issues general guidelines as a regulator and also when foreign exchange is involved. \u201cThey are not going to see from branch to branch and bank to bank what they are supposed to do,\u201d he said.<\/p>\n
It was primarily the responsibility of the banks to ensure that their business was conducted in a proper and ethical way, he added. He said when something goes wrong, \u201cone cannot blame everybody\u201d. \u201cThere is a systemic issue . They have decided instead of every year or every once in two, three or four years, they will do it (risk-based auditing).<\/p>\n
\u201cIt is a good policy. But how they determine the risk parameters\u2026 and why this did not come up are matters of detail,\u201d Chowdary said. On a bank\u2019s role in checking frauds, Chowdary said there are \u201cno timelines\u201d when it comes to deeper decision making processes.<\/p>\n","protected":false},"excerpt":{"rendered":"
Central Vigilance Commissioner K V Chowdary said the Reserve Bank of India (RBI) did not audit the Punjab National Bank (PNB) branch that sanctioned the loan defaulted by jeweller Nirav Modi and Gitanjali Gems promoter Mehul Choksi. His comments comes days after the finance minister Arun Jaitely remark that regulators, auditors decide the rules of […]<\/p>\n","protected":false},"author":1,"featured_media":26947,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[410],"tags":[],"class_list":["post-26946","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business"],"_links":{"self":[{"href":"https:\/\/blastingskyhawk.com\/english\/wp-json\/wp\/v2\/posts\/26946","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blastingskyhawk.com\/english\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blastingskyhawk.com\/english\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blastingskyhawk.com\/english\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/blastingskyhawk.com\/english\/wp-json\/wp\/v2\/comments?post=26946"}],"version-history":[{"count":1,"href":"https:\/\/blastingskyhawk.com\/english\/wp-json\/wp\/v2\/posts\/26946\/revisions"}],"predecessor-version":[{"id":26948,"href":"https:\/\/blastingskyhawk.com\/english\/wp-json\/wp\/v2\/posts\/26946\/revisions\/26948"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/blastingskyhawk.com\/english\/wp-json\/wp\/v2\/media\/26947"}],"wp:attachment":[{"href":"https:\/\/blastingskyhawk.com\/english\/wp-json\/wp\/v2\/media?parent=26946"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blastingskyhawk.com\/english\/wp-json\/wp\/v2\/categories?post=26946"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blastingskyhawk.com\/english\/wp-json\/wp\/v2\/tags?post=26946"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}