Reserve Bank of India steps in to check bank frauds

Reserve Bank of India steps in to check ...

The move comes as the central bank clamped down on the import financing route used by fugitive jeweller Nirav Modi and his uncle Mehul Choksi for allegedly committing multi-billion banking fraud.

In a major decision, the Reserve Bank of India on Tuesday barred banks from issuing guarantees in the form of letters of undertaking and letters of comfort which, are used by importers to fund their overseas purchases.

However, letters of credit and bank guarantees will continue upon meeting certain conditions.

The move comes as the central bank clamped down on the import financing route used by fugitive jeweller Nirav Modi and his uncle Mehul Choksi for allegedly committing multi-billion banking fraud.

Companies belonging to Nirav Modi and Mehul Choksi allegedly colluded with employees of Punjab National Bank's Brady House branch in Mumbai to obtain fraudulent Letter of Understandings, without providing any margin money as security. They did not have any pre-approved credit limit either.


PostedOn: 14 Mar 2018 Total Views: 130




Government committed to meet fiscal defi...

Government committed to meet fiscal deficit target...

The government is committed to meet the fiscal deficit target of 3.3 per cent for the current fiscal, interim Finance Minister Piyush Goyal said. The government will maintain stability in the economy and meet all economic parameters fixed by the government, he said today at an event here. "I can ass...

18 Jun 2018

TCS announces share buyback of up to Rs ...

TCS announces share buyback of up to Rs 16,000 cro...

India's largest information technology companyTata Consultancy Serviceson Friday announced a buyback of up to Rs 16,000 crore. TCS's board approved a proposal to buy back up to 7.6crore equity shares "for an aggregate amount not exceeding Rs 16,000 crore". The buyback is at 1.99 percent of the total...

16 Jun 2018

Apple production likely to decline in Hi...

Apple production likely to decline in Himachal Pra...

Apple production is likely to drop significantly this year and may not touch 1-crore boxes. The apple production was expected to be around 98-lakh boxes, Shimla Deputy Commissioner Amit Kashyap, who held a meeting here to view the arrangements for marketing of apple starting from July 15, said. Frei...

14 Jun 2018

Hindustan Unilever to deploy artificial ...

Hindustan Unilever to deploy artificial intelligen...

Hindustan Unilever Limited (HUL) is planning to use artificial intelligence (AI) to predict customers' grocery needs, according to a report by Mint. A software with AI functionality will be used to track a customer's record over the previous three months. How will the software work? According to the...

08 Jun 2018

Home loans of up to Rs 35 lakh may cost ...

Home loans of up to Rs 35 lakh may cost less in me...

HIGHLIGHTSBanks tend to lend aggressively to those priority sectors where default rates are low.The revision of housing loan limits for priority sector lending from existing Rs 28L to Rs 35L may lead to a reduction in interest rates on home loans of up to that amount in metros.The decision of the Re...

07 Jun 2018

Wish you could get Cardigan Donuts' ethe...

Wish you could get Cardigan Donuts' ethereal Frenc...

Wish you could get Cardigan Donuts' ethereal French crullers, churro rolls, and limited edition pastry creations outside of office hours? This summer, the populardonut loungein the Minneapolis skyway will be open for Saturday brunch from 8 a.m. to 3 p.m., featuring all-you-can-eat donuts and bottoml...

01 Jun 2018

Self-Driving Vehicles: The Newest Role f...

Self-Driving Vehicles: The Newest Role for Maps?

Self-Driving Vehicles: The Newest Role for Maps? Maps were used for many things throughout the centuries. In the coming years, maps will tell self-driving cars when to turn left and right, where to exit an interstate and where to park. That might not have quite the romantic appeal of the analog devi...

01 Jun 2018

Apple leads global tablet market, Samsun...

Apple leads global tablet market, Samsung second: ...

Apple led the global tablet market with 28.8 per cent share in the first quarter of 2018 as tablet shipments reached 31.7 million -- declining 11.7 per cent from the same quarter last year, the International Data Corporation (IDC) reported on Friday. Apple managed to ship 9.1 million iPads. Of that,...

04 May 2018