According to sources the Reserve Bank of India has asked banks to implement measures to strengthen the SWIFT operating environment within a deadline, even as it set up a committee to look into factors leading to increased number of frauds. Meanwhile in a note to the banks, the RBI had reiterated its "confidential instructions" and said these must be done within the stipulated deadline.
Meanwhile it has been decided to constitute an Expert Committee under the chairmanship of Y.H, Malegam, a former member of the Central Board of Directors of RBI that the apex bank further said in view of large divergences observed in asset classification and provisioning in the credit portfolio of banks as well as the rising incidence of frauds in the Indian banking system. Further it committee would look into the reasons for high divergence observed in asset classification and provisioning by banks vis-à-vis the RBI's supervisory assessment, and the steps needed to prevent it.
Furthermore keeping in view the $1.8 billion PNB fraud, the RBI said as
part of its ongoing efforts for strengthening of the supervisory framework in
the country, it has been issuing necessary instructions to banks from time to
time on a variety of issues of prudential supervisory concern, including the management
of operational risks inherent in the functioning of banks.
