Apportioning blame to the Reserve Bank of India (RBI) over the PNB loan fraud , Central Vigilance Commissioner K V Chowdary today said there had been "no apparent audit" by the central bank during the period of the scam. Chowdary stressed the need to put into place a more robust auditing system. "They did not do this (an audit)," the head of the probity watchdog told. The CVC exercises superintendence over the CBI which is looking into the over Rs 13000-crore Punjab National Bank fraud case.
The RBI had the regulatory responsibility for the banking sector but any lack of integrity would be looked at by the Central Vigilance Commission, he added. Chowdary said according to the RBI it had switched over from a periodic audit to a "risk-based" audit which is conducted when there is a financial risk involved. "To determine risk, they must have some parameters. Based on that they would have done that (auditing). (But) there was no apparent audit by the RBI during this period (of fraud)," Chowdary said.