RBI on PNB fraud: Banks warned 17 months ago

The Reserve Bank of India (RBI) has released a statement to strengthen its "SWIFT" mechanism. This Rs 11,400 crore Nirav Modi fraud is centred on SWIFT or Society For Worldwide Interbank Financial Telecommunication. The RBI has also said that it warned the banks as early as 17 months ago about SWIFT-related fraud. Comments come after Finance Minister Arun Jaitley broke his silence on the matter and blamed the then Punjab National Bank (PNB) management, the auditors and even the RBI's role in the scam.

In an interview with CNBC-TV18, HR Khan, Former Deputy Governor of RBI shared his views on the same.

I won’t know what all has gone into after those advisories have been issued. It is a fact that many banks did face problems while switching over to the new system so possibly that could have led to this delay. I think probably RBI will look into what went wrong in terms of implementation of its advisory then only we will come to know what was the issue, he said.

For more, watch accompanying video...