Letters of Undertaking

RBI ban on LoUs will disrupt operations, raise costs: India Inc

While the central bank may have banned the system to avoid financial frauds in future, industry bodies say banning LoUs alone will not help curb malpractices.

published on : 15th March 2018

PNB fraud: Allahabad Bank has USD 366.87 million outstanding exposure

Punjab National Bank (PNB), the country's second largest public sector bank, had detected the $1.8 billion fraud in one of its branches in Mumbai.

published on : 16th February 2018

PNB reports a massive black hole in books, two-times government’s cash infusion size, pegs it at Rs 11,363 crore

Finger of suspicion on billionaire jewellery designer Nirav Modi and Gitanjali Gems; more banks may be hit as they gave loan on PNB’s letters of undertaking

published on : 15th February 2018

Punjab National Bank fraud case: RBI, Sebi to seek help from Hong Kong regulators

Billionaire jeweller Nirav Modi allegedly acquired fraudulent letters of undertaking from a branch in Mumbai to secure overseas credit from other Indian lenders.

published on : 14th February 2018

Punjab National Bank cautions other banks about modus operandi of Rs 11,400 crore fraud linked to Nirav Modi case

CBI sources say Nirav Modi, his wife, brother and others worked with bank officials to illegally obtain Letters of Undertaking, which were cashed overseas from different banks, both private and public

published on : 14th February 2018