PNB fraud fallout: Bank deploys AI for reconciliation of accounts
Addressing its customers through a FAQ document, the fraud-hit bank said: PNB has already undertaken measures to strengthen internal audit control mechanisms. Additionally, the bank is also looking at technology interventions to enhance customer service and customer responsiveness.... There is a move to improve audit systems by incorporating analytics and AI for reconciliation of accounts
State-run Punjab National Bank on Saturday said that in a move to foil a repeat of the recent fraud, it has deployed Artificial Intelligence (AI) for reconciliation of accounts. Addressing its customers through a FAQ document, the fraud-hit bank said: "PNB has already undertaken measures to strengthen internal audit control mechanisms. Additionally, the bank is also looking at technology interventions to enhance customer service and customer responsiveness...." "There is a move to improve audit systems by incorporating analytics and AI for reconciliation of accounts. Finacle 10 has been implemented and the bank is looking at leveraging additional features."
On the recent fraud, PNB said that it has a "zero tolerance to unethical practices within the system". As per the FAQ document, the bank clarified that there is no additional fraud of Rs. 942 crore by Geetanjali Group but a "recall of credit limits".
"We would want to clarify that there are no new frauds but recall of credit limits. The amount of Rs 942 crore were the regular limits sanctioned to Geetanjali
Group under consortium lending and were standard credit exposure at the time of detection of the fraud," the document said.
"This amount has nothing to do with any new fraudulent Letters of Undertaking (LoUs) or Foreign Letters of Credit (FLCs)."
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