INSUBCONTINENT EXCLUSIVE:
In its complaint, the RBI has alleged non-compliance of its 2016 order
current executive officials and the current managing director, for alleged violation of banking regulations and criminal
conspiracy.Metropolitan Magistrate Dharmender Singh asked PNB Managing Director (MD) and CEO Sunil Mehta, Executive Director Sanjiv Sharan,
former MD Usha Ananthasubramanian, former executive director RS Sangapure and seven others to appear before it on May 24 on the basis of a
complaint filed by the Reserve Bank of India.The court has also summoned as accused serving General Manager IJ Arora, Assistant General
Managers TR Venkateswaran and IP Singh, Chief Manager SK Srivastava, former general managers Nehal Ahad and Rakesh Kumar and former deputy
general manager Sunil Mohan.In its complaint, the RBI has alleged non-compliance of its 2016 order directing commercial banks, including the
PNB, to integrate their core banking system with various critical applications to reduce online fraud.The central bank alleged that the
accused willfully and deliberately gave false information in their compliance report and the PNB's core banking system was not integrated
with the applications and there was no online integration of SWIFT with the RBI's Core Banking Solution (CBS).SWIFT is a messaging system
that enables banks and financial institutions to send and receive information about financial transactions through encrypted codes.The RBI
has further alleged that the accused willfully and deliberately made false statements in the compliance report despite being aware of the
risks and repercussions of failing to integrate SWIFT with the CBS.The RBI, in its circular issued to all commercial banks, including the
PNB, had advised the banks to strengthen the controls around the operating environment for fund transfers through SWIFT or similar
interfaces and banks were advised to minimise the practice of direct creation of payment messages in the SWIFT environment with routing the
same through CBS.The RBI claimed that the case came to light during systems inspection at the PNB's Brady House Branch in Mumbai, where it
was found that the information provided by the officials in the last few years were completely false."The accused have willfully made false
statement in utter disregard to their statutory obligation of the Banking Regulation Act, 1949.""Accused have deliberately furnished false
and misleading statements to RBI and it was done with common intention and in connivance with each other," it alleged.Get the latest
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