You are here: Home » Economy & Policy » News
Business Standard

PNB scam fallout: RBI asks banks for details of LoUs as far back as 2011

Importers typically use LoUs issued by their local bank to raise cheaper foreign currency loans overseas to fund purchases

Reuters  |  New Delhi/Mumbai 

The Reserve Bank of India has asked commercial lenders to provide it with details of all letters of undertaking - a form of credit guarantee at the centre of an alleged $2 billion fraud - issued by them in the past several years, according to four bankers who have seen the directive. The regulator is ratcheting up pressure on lenders, increasing its scrutiny and laying down deadlines for them to fix gaps in their systems, in the aftermath of the country's biggest bank fraud. Two jewellery groups were accused last month of defrauding state-run Punjab National Bank (PNB) of ...

This article is no longer available in our repository.

There could be multiple reasons for this.

First Published: Sat, March 10 2018. 00:18 IST
RECOMMENDED FOR YOU