Letter Of Undertaking

PNB scam: By killing LoUs, RBI is throwing baby out with bathwater; why punish traders for own failure?

Terminating LoUs altogether is no solution. On the contrary, it is counter-productive

Bulk gold, diamond importers to take biggest hit as RBI bans LoUs and LoCs for trade credit after PNB scam

RBI said letters of comfort and bank guarantees for trade credits for imports into India may continue to be issued subject to compliance with the certain guidelines.

PNB scam: Govt makes startling revelation in Parliament, says RBI had cautioned banks multiple times on SWIFT misuse

RBI has mandated commercial banks to put in place adequate audit and compliance mechanisms with bank board-level reporting through the audit committee of the board post PNB scam.

Nirav Modi scam effect: RBI stops use of Letters of Undertaking for trade credit for imports

The RBI said the decision to discontinue the practice of LoUs and Letters of Comfort (LoCs) for trade finance comes into force with immediate effect

RBI and other agencies missed warning signs, failed to detect Rs 12,700-cr Punjab National Bank fraud

Reuters has uncovered new evidence that shows the RBI also failed for years to either detect the fraud or respond adequately to red flags in the banking system.

PNB scam: ED finds diamond czar Nirav Modi might have imported 10,000 watches for 'business purposes'

The imported watches were seized from the 60 plastic containers from several locations connected to diamond czar Nirav Modi

PNB fraud: RBI had no clue on Rs 11,400 cr scam for seven long years; can a super regulator do the job?

The PNB fraud highlighted a larger systemic problem raising questions about the effectiveness of regulatory framework followed by Indian banking system, risk management practices and vulnerability of Indian banks to fraudulent transactions that extends across the border

PNB Fraud Case: How Nirav Modi's employees colluded with bank officials to create fake LoU

In its note, the agency has made a startling revelation that even top officials of the PNB beginning with the zonal to head office was aware of the business dealing with Nirav Modi's companies and the assertion that top officials were ignorant has been neutralized by the probe agency.

PNB fraud case updates: Finance ministry might seek Banks Board Bureau's inputs to see if a PNB top brass rejig is possible

In the PNB scam case, a special CBI court sent to police custody, till 5 March, five senior executives of the Nirav Modi and Mehul Choksi Group of Companies, including Vipul Ambani

Punjab National Bank fraud case: CBI probe reveals officials took commissions to sign LoUs

Punjab National Bank officials used to take percentage commissions in lieu of issuing letters of undertaking and foreign letters of credit to diamond czar Nirav Modi and his partner Mehul Choksi and their firms, according to the probe into the Rs 11,300 crore banking scam