Urgent need for banks to review the monitoring system

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Granted that not linking SWIFT to the Core Banking System (CBS) led to the fraud of about 11,400 crores at the Punjab National Bank, said the former head of the scam lender there There was an urgent need for banks to review their monitoring system and gaps to include.

General Manager and Chief Executive Officer of Allahabad Bank Usha Ananthasubramanian, said that his bank SWIFT (Society for Global Interbank Financial Telecommunication) also had no connection with CBS and that the process of linking Both systems was currently underway.

“I want to tell you that there can┬ábe still [loopholes] because the technology is growing so fast that what is today, tomorrow may become obsolete and you may not have improved it. Time for all of us [the banks] to be quite closely revisit [the monitoring system] and then take all measures that can create maximum security, “Ananthasubramanian told reporters on Friday.

The fraud would have started at Panjab National Bank in 2011. Before joining Allahabad Bank, Mrs Ananthasubramanian was executive director and general manager of PNB between August 2015 and May 2017. She was also Executive Director of PNB from July 2011 to November 2013.

“An outer limit”

She said that the Reserve Bank had asked banks that SWIFT had not linked to CB to complete the process before April 30, 2018. “It could be a deadline, but it is an external limit,” she said.

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