(15/03/18) New Delhi: To prevent any banking scams in the future and make their employees accountable, the Public Sector Banks (PSBs) are now introducing Know Your Employee (KYE) programme. Though this, the banks will monitor their employees activities, said Chief Risk Officer (SBI) MS Shastri during a press conference on Thursday.
Taking a lesson from recently happened slew of banking scams and to ensure safety of public money in the banks, all Public Sector Banks (PSBs) organised a three-day workshop of Executive Directors, Chief Risk Officers and Chief Technical Officers of PSBs at State Bank Academy, Gurgaon to fill the loopholes and strengthen the banking system with the help of technology.
Talking to media, Chief Risk Officer (SBI) MS Shastri said, “During the workshop, Banks deliberated upon the best practices and drawn the action plans to strengthen the controls in the areas of trade finance, SWIFT, credit risk, operational risk besides cyber and IT risk. Banks will now place these action plans with timelines for implementation/improvement before the respective Boards.”
Following the conference, Executive Director of PNB, Sanjiv Sharan said that the recent scam which shook the nation took place in one of the branches of PNB is one of its kind in about 5000 branches dealing in foreign exchange in the entire banking system in India.
“Each Bank has already scanned their LOU/LOG related transactions and have confirmed during the workshop that all of them are properly assessed, genuine and accounted for except those already reported,” he said.
During the workshop, participants also debated on the common areas for strengthening credit process. Besides, it was also agreed that all Banks will henceforth follow the uniform approach for certain common covenants. In addition, Banks will further strengthen their mechanism with regard to the Early Warning Signals.
Improving risk awareness and ethical awareness amongst staff, preventive monitoring and surveillance of transactions, strengthening Know Your Employee (KYE) through technological intervention are some of the action points identified to further strengthen operational risk management.
During the press conference, officials on behalf of all PSBs assured that they are committed to provide Enhanced Access and Service Excellence (EASE) to all customers in a safe and secured environment. The Brand PSB is safe and sound to Bank with.
