Skip to main content

Rs 114-bn scam: Pay up dues to banks for claims against LoUs, RBI tells PNB

RBI seeks detailed report on what happened between 2011 and now; bankers to recall loans to 
Nirav Modi entities

 PNB

The Reserve Bank of India (RBI) has advised Punjab National Bank (PNB) to pay up dues to banks for claims against letters of undertakings (LoUs) and also sought a detailed report on what happened between 2011 and now.

Moving into damage control mode after the LoU fraud amounting to Rs 114 billion, the banking regulator also asked all lenders to tighten their monitoring of such LoUs and enhance due diligence in issuing these letters of comfort and non-fund based activities. A top executive at a Mumbai-based public sector bank said the RBI had communicated that PNB would have to honour all its obligations related to LoUs.

A junior branch official fraudulently issued LoUs without authority on behalf of firms belonging to the Nirav Modi group — Solar Exports, Stellar Diamonds, and Diamonds R Us — for availing of buyers’ credit from overseas branches of Indian banks.
The firms were maintaining only current accounts with the branches and did not enjoy any fund or non-fund based limits.

PNB, India’s second-largest state-owned lender after SBI, is now valued at Rs 311 billion
The slide in the bank’s shares has hurt LIC, which holds 14% stake
“Besides conducting the probe, the RBI will have to investigate the loophole and ensure that the risk management systems are made more robust,” said Deepak Bhawnani, chief executive officer (CEO) of Alea Consulting, a global risk mitigation and investigative consulting firm.

Read more : PNB Scam

Labels:

Comments

Post a Comment

Popular posts from this blog

Best Unconventional Workout and Sporting Activities for Summer

In summers, depending upon conditions and circumstances one can incorporate both outdoor  and indoor activities in their training schedule.   Summer is the season of holidays, picnics, outings and beaches. With travel and binge eating proper workout becomes that much more essential in summers. But with heat and the sun outdoors, an individual has to balance his indoor and outdoor activities to get a fulfilling workout. In summers, depending upon conditions and circumstances one can incorporate both outdoor and indoor activities in their training schedule. Mentioned below are some of the best physical and sporting activities that one can use as a workout to stay fit in the summer season. Beach Sports - If in summers one is going to spend much time on beaches or at a beach destination then one may use beach sporting activities such as beach rugby, beach soccer, beach tennis and beach volleyball to stay fit. All of these sporting activities on sand provide a ...
Post a Comment
Read more

Mi Notebook Ultra review: Xiaomi energises the boring consumer PC segment

  The Mi Notebook Ultra challenges the conventions set by the legacy consumer PC makers by democratising features and specifications usually seen in laptops that cost almost twice as much I was planning to buy a midrange laptop and was amazed to see that every other legacy brand in the consumer PC market had products with similar features and specifications. Blame the oligopoly, but as a consumer I was almost convinced that the product offerings by the legacy PC makers were the best available in the market. And then was released the Mi Notebook Ultra by Chinese technology company Xiaomi. A premium laptop, the  Mi Notebook Ultra  challenged the conventions set by legacy consumer PC makers by democratising features and specifications usually seen in laptops that cost almost twice as much as the top-end model (review unit – Rs 76,999) on offer here. Starting with the design, the Mi Notebook Ultra boasts a unibody made of series 6 ...
Post a Comment
Read more

Back in TV studio after release from jail, Arnab dares Maharashtra CM

  Goswami also singled out Mumbai police commissioner Param Bir Singh for his ‘illegal’ arrest on November 4 in a 2018 suicide abetment case Back in the familiar environs of the TV newsroom after a week in judicial custody, journalist Arnab Goswami on Wednesday hit out at Maharashtra Chief Minister Uddhav Thackeray for arresting him in a ‘fake’ case. “Uddhav Thackeray, listen to me. You lost. You have been defeated,” said Goswami (47), while being surrounded by visibly relieved colleagues from his Republic TV channel. Soon after his release from Taloja jail near Mumbai around 8.30 pm, Goswami drove to the Lower Parel studio of the channel, of which he is the Editor-in-Chief.  Arnab Goswami  also singled out Mumbai police commissioner Param Bir Singh for his ‘illegal’ arrest on November 4 in a 2018 suicide abetment case. Goswami said that while in Taloja jail since November 8, he was subjected to three rounds of police interrogation. “Uddhav Thackeray, you arrested me in a...
Post a Comment
Read more