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  • M & M slid by 6 46 pc to Rs 895 40
  • Council Byelection: BJP not to contest
  • Commerce minister Prabhu arrives in Dhaka
  • Sensex down by 536 58 pts
  • Doctors at Fortis Hospital, Anandapur successfully performs Kolkata's second Heart Transplant
  • AP, Odisha, MP bag award of best performing states
  • Govt dismisses Rahul Gandhi’s comment on SPG
  • Congress leader Shantaram Potdukhe passes away
  • Biggest scam in defence acquisition history, Cong meets CVC, demands FIR on Rafale deal
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  • Infant among five dead in Doda landslide
  • Confidentiality clause prevents Assam govt from sharing Priyanka's contract
  • Yameen concedes defeat, India says poll result a triumph of democracy
  • 16 dead during Ganpati immersion in Maharashtra
  • Maoist attack: CRPF launches massive combing operation in Vizag
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Taking lessons from PNB-Neerav Modi scam, RBI discontinues LoUs, LoCs for Trade Credits

Taking lessons from PNB-Neerav Modi scam, RBI discontinues LoUs, LoCs for Trade Credits

New Delhi, Mar 13 (UNI) In a major decision to rein in the scam like PNB-Neerav Modi, Reserve Bank of India (RBI) on Tuesday asked the banks not to issue Letters of Undertaking (LoUs).

LoUs were the instruments used allegedly by diamantaire Nirav Modi and his uncle Mehul Choksi to defraud state-owned PNB of nearly Rs 12,499 crores in connivance of bank officials.

RBI notification said, “On a review of the extant guidelines, it has been decided to discontinue the practice of issuance of LoUs/ LoCs for Trade Credits for imports into India by AD Category –I banks with immediate effect.

“Letters of Credit and Bank Guarantees for Trade Credits for imports into India may continue to be issued subject to compliance with the provisions contained in Department of Banking Regulation Master Circular dated July 1, 2015 on “Guarantees and Co-acceptances”, as amended from time to time,” said the RBI.

It added that Punjab National Bank reported fraudulent issuance of LoUs/ Foreign Letters of Credit for payment of import bills and fraudulent transactions in accounts, amounting to Rs 129.67 billion, to the RBI through its fraud monitoring reporting system. A multi-agency probe, including by CBI and ED has been launched into the PNB fraud. The RBI notification further said that Letters of Credit and Bank Guarantees for trade credits for imports into India may continue to be issued subject to compliance with the provisions.

UNI ADP SHK 1957

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Fuel prices continue to soar; petrol retailing at Rs 90 08 in Mumbai

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24 Sep 2018 | 4:07 PM

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Honda's two-wheeler exports surpass 2 million unit mark

24 Sep 2018 | 3:59 PM

Gurugram, Sep 24 (UNI) Achieving a milestone, the Honda 2Wheelers India on Monday announced that its exports have now surpassed the 2 million cumulative exports mark.

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Kozhikode Coir market

24 Sep 2018 | 3:12 PM

Kozhikode, Sep 24 (UNI) Following were the rates in the
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