AU Small Finance Bank begins internal probe after Haryana account fiasco – News Air Insight

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AU Small Finance Bank said it has begun an internal review as the Haryana government de-empanelled it citing irregularities but added there is no indication of any financial impact or any fraudulent activity at the bank.

The bank said it has placed some employees off duty. “The bank’s board has been informed and the bank continues its internal review on this matter. To ensure a fair and transparent review, certain employees have been placed off duty,” AU said in a late Sunday note.

There were 14 suspected transactions involving Rs 47 crore from a Haryana government account to a customer account, both maintained with AU Small Finance Bank.

The bank said both these accounts were duly opened after completion of all applicable customer verification and requisite authorisations and in accordance with the bank’s policies and processes. “Based on available facts at this stage …there is no indication of any financial impact or any fraudulent activity towards the bank,” the bank said.



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