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RBI clamps down on credit guarantees as PNB fraud swells

Reuters  |  MUMBAI 

By Abhirup Roy and Devidutta TripathyMUMBAI (Reuters) - The Reserve Bank of India on Tuesday barred all lenders from issuing letters of undertaking - a form of credit guarantee at the heart of a major fraud - as embattled Punjab National Bank disclosed its total exposure in the case had risen by another $145 million.In what has been dubbed the biggest fraud in India's banking history, Punjab National (PNB), the country's second-biggest state-run bank, said last month it had been defrauded of about $2 billion.The bank has accused two jewellery groups - one controlled by diamond tycoon Nirav ...

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First Published: Tue, March 13 2018. 21:16 IST
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