PNB scam: CII for hi-tech control systems, privatising PSBs
New Delhi: Within the aftermath of alleged Rs 11,400 crore Punjab Nationwide Financial institution (PNB) rip-off, the Confederation of Indian Trade (CII) on Sunday referred to as for higher and hi-tech management techniques to verify monetary frauds.
The apex trade physique additionally pressed for a gradual lower in authorities holding in public sector banks (PSBs).
The federal government ought to strategically divest its stake in PSBs to 33 % in a phased method and undertake a twin technique for tackling monetary frauds, together with higher monitoring and supervision of banks and adoption of finest company governance requirements, the Confederation of Indian Trade (CII) stated in a launch right here.
“The federal government, regulators and trade should act quick to handle systemic dangers within the monetary sector,” CII President Shobana Kamineni stated in a press release.
“The three key options for the banking sector are higher administration and operational efficiencies, use of know-how resembling blockchain and massive information analytics, and decreasing authorities shareholding in public sector banks,” the CII assertion learn.
Noting that know-how might be a significant enabler for monitoring transactions which are topic to monetary fraud and dangers, the CII stated, “Some banks are already deploying synthetic intelligence, massive information and blockchain applied sciences to raised regulate their operations.”
The CII stated that you will need to minimise human interface in such transactions to decrease the danger of misdemeanours.
The CII president, nonetheless, cautioned that such situations of collusion between corrupt financial institution officers and scamsters shouldn’t result in a state of affairs of choking of credit score to the trade.
“It’s time for the federal government to think about consolidation of PSBs and develop just a few sturdy banks which adhere to the perfect requirements in governance, accountability and transparency,” the CII stated.
The CII president additionally referred to as for a roadmap for bringing the federal government stake all the way down to 33 % in three to 4 years.
As per the fees filed in diamond service provider Nirav Modi case, financial institution Letters of Endeavor and International Letters of Credit score had been used to lift and rollover the cash over a number of years earlier than the fraud got here to gentle following the PNB’s grievance.
(With Company Inputs)