PNB, the second largest public sector bank in India, had detected the $1.8 billion fraud in one of its branches in Mumbai.
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The government had made quoting Aadhaar mandatory for bank accounts as well as for financial transaction of Rs 50,000 and above.
This is in line with the Centre last week informing the Supreme Court that it is willing to extend till March 31 the deadline fixed for mandatory linking of Aadhaar to avail various services and welfare schemes.
In October, government had announced a Rs 2.11 trillion capital infusion into the NPA-hit public sector banks over the next two years
The bank's board had earlier approved the proposal to raise the money on November 10.
Sensex rose 301 points, or 0.91%, higher to close at 33,250 points, while Nifty jumped 99 points, 0.97%, to close at 10,266 points.
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