{"id":30690,"date":"2018-10-26T17:31:12","date_gmt":"2018-10-26T12:01:12","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=30690"},"modified":"2018-10-26T17:31:12","modified_gmt":"2018-10-26T12:01:12","slug":"pnb-fraud-rbi-starts-special-audit-of-public-sector-banks","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/pnb-fraud-rbi-starts-special-audit-of-public-sector-banks\/","title":{"rendered":"PNB fraud: RBI starts special audit of public sector banks"},"content":{"rendered":"<p><a href=\"http:\/\/www.thehindu.com\/todays-paper\/tp-business\/pnb-fraud-rbi-starts-special-audit-of-public-sector-banks\/article23043276.ece\"><strong>PNB fraud: RBI starts special audit of public sector banks<\/strong><\/a><\/p>\n<p><strong>Context <\/strong><\/p>\n<p>PNB Scam<\/p>\n<p><strong>What has happened?<\/strong><\/p>\n<p>RBI has initiated special audit of State-owned lenders with focus on trade financing activities, especially relating to issuance of letters of undertaking (LoUs) by them<\/p>\n<ul>\n<li>In addition, the RBI has asked all banks for <strong>details of the LoUs<\/strong> they had issued, including the <strong>amounts outstanding<\/strong>, and <strong>whether the banks had pre-approved credit limits<\/strong> or kept enough cash on margin before issuing the guarantees<\/li>\n<\/ul>\n<p><strong>Major frauds &amp; wilful defaults in<\/strong>: Trade Finance<\/p>\n<p><strong>Backdrop<\/strong><\/p>\n<p>In view of the recent Rs. 12,646-crore PNB scam, perpetuated through fraudulent issuance of LoUs with the connivance of the bank\u2019s staff, it was pertinent for the regulator RBI to examine the issue of trade finance which also included issuance of letters of credit (LC) and LoUs<\/p>\n<p><strong>NPA scrutiny<\/strong><\/p>\n<p>The government recently asked the State-owned banks to scrutinise all cases of non-performing assets (NPAs) exceeding Rs. 50 crore for possible fraud and report the matter to the Central Bureau of Investigation.<\/p>\n<ul>\n<li><strong>Pre-emptive action plan<\/strong>: Banks have also been asked by Finance Ministry to come up with a \u201cpre-emptive\u201d action plan in a fortnight to combat rising operational and technical risks, and assign clear accountability to senior functionaries<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>PNB fraud: RBI starts special audit of public sector banks Context PNB Scam What has happened? RBI has initiated special audit of State-owned lenders with focus on trade financing activities, especially relating to issuance of letters of undertaking (LoUs) by them In addition, the RBI has asked all banks for details of the LoUs they&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/pnb-fraud-rbi-starts-special-audit-of-public-sector-banks\/\">Continue reading <span class=\"screen-reader-text\">PNB fraud: RBI starts special audit of public sector banks<\/span><\/a><\/p>\n","protected":false},"author":61,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[555],"tags":[],"class_list":["post-30690","post","type-post","status-publish","format-standard","hentry","category-test-1","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":"","cached_date":1704630203},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/30690","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/61"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=30690"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/30690\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=30690"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=30690"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=30690"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}