'Former RBI Deputy Governor Questioned In PNB Fraud Case'

New Delhi: The Central Bureau of Investigation has questioned former deputy governor of the Reserve Bank of India, H.R. Khan, in relation to the $2 billion fraud at state-run Punjab National Bank, a government source told Reuters on Friday.

It was not immediately clear what was Khan questioned about. Khan was not immediately available for a comment.

Two jeweller groups have been accused of defrauding banks by raising loans from overseas branches of Indian lenders using nearly $2 billion of fraudulent guarantees issued by rogue Punjab National Bank staff at a Mumbai branch.

The fraud - which is being investigated by CBI and other enforcement agencies - is the biggest in the country's banking history.

Separately, four senior RBI officials were called on by investigators to help explain banking processes, sources familiar with the matter said on Thursday. A federal police source had said the agency was questioning them, without giving further details.


 

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