Finance ministry to reserve bank on Rs 11,400 crore fraud in PNB

New Delhi, Feb 19: After the big fraud of Rs 11,400 crore at Punjab National Bank the finance ministry has asked Reserve Bank's view on the lapses in the banking system.

The letter also seeks the regulator's advice on what system and processes need to be updated so that such frauds are prevented, sources added.

PNB, the country's second-largest bank, has reported a fraud of Rs 11,400 crore, wherein Letters of Undertaking (LOUs) were fraudulently used allegedly by companies owned by billionaire jewellers Nirav Modi and Mehul Choksi.