Govt owned banks are looking to appoint a nodal officer to safeguard their deposits that could be linked in the $1.2 bn arbitration award involving Cairn Energy and the Centre.
ET reports that the govt has written a letter to public sector bank chiefs suggesting they immediately inform Sanjay Kumar, director – banking operations, if they receive ‘any intimation/notice/letter’ from Cairn Energy Plc and its subsidiary Cairn UK Holdings.
Reports also suggest that banks have been asked to reduce cash holdings in overseas accounts.