PNB Scam: Public Sector Banks To Centralize the CBS

It is said, the wake of the Punjab National Bank (PNB) scam shook all the banks leading them to take precautionary measures. Several public sector banks began conducting reviews and taking measures to centralize all processes linked to the Core Banking Solutions (CBS.) It is said, centralizing the CBS processes will reduce the operational risks leading to scams such as the PNB Scam.

On Tuesday, the Bank of Baroda issued a circular to its zonal heads regarding Trade Credits. The circular read, “Should not issue Letters of Undertaking (LOU)/Letters of Comfort (LOC) in favour of overseas supplier, bank or financial institution on behalf of the customers for Trade Credit effective from Today, 20th of February 2018 till further instructions”