PSBs have verified LoUs: SBI

All state- owned banks have verified LoUs issued by them and there are no other unauthorised authority letters except for those issued by PNB, said M. S. Sastry, deputy MD of State Bank of India.

“Each bank has already scanned their LoU/ LoC related transactions and have confirmed that all of them are properly assessed, genuine and accounted for except those reported,” said Mr Sastry.

He said that only one branch out of around 5,000 branches dealing with forex had this breach of control.

All the CTOs and CROs of the PSBs are participating in a workshop, which is coordinated by SBI on the issues of Operational and Technological Risk Management.

Further controls have also now have been put in place that included additional layer of approvals for all outward swift message, integration of SWIFT with CBS ( core banking solution) latest by April 30, 2018 besides time restrictions for such transactions that is between 9 am to 8 pm only, said Mr Sastry.

Direct message creation in RTGS/ NEFT should not be permitted without corresponding entry in CBS.

Multiple banking arrangements will be discouraged for borrowers having more than ` 250 crore exposure from the banking sector.

Mr Sastry said that PSBs want PNB to honour its commitment with regard to LoUs allegedly issued by it to Nirav Modi and its associates. He also said exact liability will be known after the completion of investigation.

“They were all issued by PNB and against that we have made payment,” he said.