Jaitley slams regulators for failing to detect PNB scam

NC Network, New Delhi, 

Claiming the regulators of the Indian system 'unaccountable', finance minister Arun Jaitley on Saturday slammed the regulators for failing to detect Rs. 11,400 crore fraud at the Punjab National Bank for seven long years. 

Speaking on this scam, Jiatley said employees conniving with fraudsters is worrisome. Also worrisome is that no red flag was raised. Regulators should have a "third eye" open to detect and check such frauds.

During the ET global business summit, the minister opined that the industry needs to get into the habit of doing 'ethical' business as such frauds are "scars" and push reforms and ease of doing business to the background.

Unethical behaviour in the lender-borrower relation has to end, he said. "If needed laws will be tightened further to punish delinquent persons."

He also slammed bank management for failing to do their job saying inadequate supervision and top management being unaware of what was going on in the bank was worrisome.

with inputs from PTI 

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