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PSB CEOs Asked to Check Frauds in NPAs or Face Action
September 01, 2018
Taking another major step towards tackling the problem of bad loans in India, the Finance Ministry has asked the heads of public sector banks to look into all NPA accounts exceeding Rs. 500 million for frauds. Failing to do so may invite legal action, official sources said.
If a banker fails to report a fraud in an NPA account and later if investigating agencies learn about it, then they can be punished under section 120B of the Indian Penal Code, they added.
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