1) 11400 Crores Fraud
2) Nirav Modi, the billionaire jeweler who along with others scammed Punjab National Bank (PNB) of over 11400 crore’s has fled the country.
3) Apparently Nirav modi spotted in which placeWE DON’T KNOWBut What exactly is this scam?
4) The CBI has registered a case against Nirav Modi on January 29. Punjab National Bank registered a case against Nirav Modi, His Brother Neeshal & His Uncle Mehul Choksi on February 13.
5) The Bank initially reported a scam of rupees 280 crores. But it was later realized to be rupees 11400 crores. This is a lot of money. So how does one get away with a scam of such magnitude? Possibly it is one of the biggest in Indias’s banking history.
6) Nirav Modi is an importer of diamonds. Basically importers prefer to take loans in foreign currencies as interest rates on that are lower. In this case a loan that is taken from any overseas bank guaranteed by PNB. Then what Modi had to do was approach PNB & ask for buyers credit?In order to do this PNB had to issue a “letter Of Undertaking” to an overseas bank. Basically LoU guarantees an overseas bank that if it gives money for a specified period to identified by the home bank (in this case PNB) then the home bank will assure that the money will be returned to the overseas bank.
7) Most of these overseas banks are Indian Banks with foreign branches. So the overseas bank directly give to loan PNB not Nirav Modi. An account has to create by PNB called a NOSTRO account where the overseas bank gives the loan.
.
.
.
.
.
More.........
HERE IS THE PPT ON PNB SCAM
NIRAV MODI
WE MADE IT BASED ON EARLIER FACED FRAUD BY PNB
FRAUDSTER NAME IS NIRAV MODI
I THINK IT WILL CLEAR ALL YOUR DOUBTS ABOUT SCAM
ppt on Nirav Modi or PNB scam with all details till 2020
the data is collected from Wikipedia, articles, and videos available on youtube and other platforms.
1) 11400 Crores Fraud
2) Nirav Modi, the billionaire jeweler who along with others scammed Punjab National Bank (PNB) of over 11400 crore’s has fled the country.
3) Apparently Nirav modi spotted in which placeWE DON’T KNOWBut What exactly is this scam?
4) The CBI has registered a case against Nirav Modi on January 29. Punjab National Bank registered a case against Nirav Modi, His Brother Neeshal & His Uncle Mehul Choksi on February 13.
5) The Bank initially reported a scam of rupees 280 crores. But it was later realized to be rupees 11400 crores. This is a lot of money. So how does one get away with a scam of such magnitude? Possibly it is one of the biggest in Indias’s banking history.
6) Nirav Modi is an importer of diamonds. Basically importers prefer to take loans in foreign currencies as interest rates on that are lower. In this case a loan that is taken from any overseas bank guaranteed by PNB. Then what Modi had to do was approach PNB & ask for buyers credit?In order to do this PNB had to issue a “letter Of Undertaking” to an overseas bank. Basically LoU guarantees an overseas bank that if it gives money for a specified period to identified by the home bank (in this case PNB) then the home bank will assure that the money will be returned to the overseas bank.
7) Most of these overseas banks are Indian Banks with foreign branches. So the overseas bank directly give to loan PNB not Nirav Modi. An account has to create by PNB called a NOSTRO account where the overseas bank gives the loan.
.
.
.
.
.
More.........
HERE IS THE PPT ON PNB SCAM
NIRAV MODI
WE MADE IT BASED ON EARLIER FACED FRAUD BY PNB
FRAUDSTER NAME IS NIRAV MODI
I THINK IT WILL CLEAR ALL YOUR DOUBTS ABOUT SCAM
ppt on Nirav Modi or PNB scam with all details till 2020
the data is collected from Wikipedia, articles, and videos available on youtube and other platforms.
Punjab National Bank Fraud (Nirav Modi Scam) ppt presentation slideshareFatema Tandiwala
A case study presentation on Punjab National Bank scam (Nirav Modi)
India's second largest state-owned lender Punjab National Bank disclosed on Feb. 14, 2018 that it was the victim of the country’s largest bank fraud.
PNB revealed that fraudulent transactions by billionaire jeweler Nirav Modi and related entities amounted to $1.77 billion or over Rs 11,400 crore.
The key accused in the case were jeweler and designer Nirav Modi, his maternal uncle Mehul Choksi, and other relatives and some PNB employees.
Nirav Modi and his relatives escaped India in early 2018, days before the news of the scam became public.
PNB scam has been dubbed as the biggest fraud in India's banking history.
A case study on how Harshad Mehta scammed the entire stock market. There are certain examples and history on how he played a role as a stockbroker.
The underlined and highlighted words can be googled to further more enhance your knowledge.
The scam can be categorized as capital market scam
in which it is done by manipulating the facts in order to attain enormous funds.
There are four different aspects of the scam.
Diversion of funds
Intra day trading
Use of ready forward to maintain SLR
Fake bank recipts
Punjab National Bank Fraud (Nirav Modi Scam) ppt presentation slideshareFatema Tandiwala
A case study presentation on Punjab National Bank scam (Nirav Modi)
India's second largest state-owned lender Punjab National Bank disclosed on Feb. 14, 2018 that it was the victim of the country’s largest bank fraud.
PNB revealed that fraudulent transactions by billionaire jeweler Nirav Modi and related entities amounted to $1.77 billion or over Rs 11,400 crore.
The key accused in the case were jeweler and designer Nirav Modi, his maternal uncle Mehul Choksi, and other relatives and some PNB employees.
Nirav Modi and his relatives escaped India in early 2018, days before the news of the scam became public.
PNB scam has been dubbed as the biggest fraud in India's banking history.
A case study on how Harshad Mehta scammed the entire stock market. There are certain examples and history on how he played a role as a stockbroker.
The underlined and highlighted words can be googled to further more enhance your knowledge.
The scam can be categorized as capital market scam
in which it is done by manipulating the facts in order to attain enormous funds.
There are four different aspects of the scam.
Diversion of funds
Intra day trading
Use of ready forward to maintain SLR
Fake bank recipts
Satyam and Nirav Modi Scam ( case study) by Karan SetiaKaran Setia
This presentation is about the complete case study of two of the biggest scams in the Indian banking and Stock Market History.
Nirav Modi, a diamantaire how he got famous with his links and fooled the Indian banking system with the help of his connections.
Satyam Computers Stock Market scam is still the biggest scam in the Indian history again bypassing with the loopholes in the Indian system
A Study on State Bank of India’s Doorstep Banking Serviceijtsrd
The government has imposed strict movement regulations amid the COVID 19 lockdown in the country. All bank account holders fail to withdraw their money and meet the banks directly. It has become tough to lead their life with minimum needs because of shortage of money, especially to senior citizens. In this context, the top banking institutions such as State Bank of India SBI , HDFC Bank, ICICI, AND Axis Bank will now give essential services to their bank account holders. They will provide Doorstep Banking facilities which includes cash delivery, cash withdrawals, cheque deposits, etc. As of now, the State Bank of India is a bigger arranger responsible for external commercial borrowings in the country and it’s one of the biggest providers of infrastructure debt. So SBI is performing a major role in providing reliable doorstep banking services to the customers. Ms Priyanka B Kadur | Dr. Supriya. R "A Study on State Bank of India’s Doorstep Banking Service" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-5 | Issue-1 , December 2020, URL: https://www.ijtsrd.com/papers/ijtsrd38223.pdf Paper URL : https://www.ijtsrd.com/humanities-and-the-arts/tourism/38223/a-study-on-state-bank-of-india’s-doorstep-banking-service/ms-priyanka-b-kadur
Covers AIDA model and how the entire sales process will take place between the Airlines and customer.
by Yohan Dsouza
Don Bosco Institute of Technology, Kurla - MMS
How did Paytm benefit from the Demonetisation, what is their marketing strategy?
- Do not directly copy any part of this PPT, remember to do your own research!
- Don Bosco Institute of Management & Research (DBIMR)
what is the future of Pi Network currency.DOT TECH
The future of the Pi cryptocurrency is uncertain, and its success will depend on several factors. Pi is a relatively new cryptocurrency that aims to be user-friendly and accessible to a wide audience. Here are a few key considerations for its future:
Message: @Pi_vendor_247 on telegram if u want to sell PI COINS.
1. Mainnet Launch: As of my last knowledge update in January 2022, Pi was still in the testnet phase. Its success will depend on a successful transition to a mainnet, where actual transactions can take place.
2. User Adoption: Pi's success will be closely tied to user adoption. The more users who join the network and actively participate, the stronger the ecosystem can become.
3. Utility and Use Cases: For a cryptocurrency to thrive, it must offer utility and practical use cases. The Pi team has talked about various applications, including peer-to-peer transactions, smart contracts, and more. The development and implementation of these features will be essential.
4. Regulatory Environment: The regulatory environment for cryptocurrencies is evolving globally. How Pi navigates and complies with regulations in various jurisdictions will significantly impact its future.
5. Technology Development: The Pi network must continue to develop and improve its technology, security, and scalability to compete with established cryptocurrencies.
6. Community Engagement: The Pi community plays a critical role in its future. Engaged users can help build trust and grow the network.
7. Monetization and Sustainability: The Pi team's monetization strategy, such as fees, partnerships, or other revenue sources, will affect its long-term sustainability.
It's essential to approach Pi or any new cryptocurrency with caution and conduct due diligence. Cryptocurrency investments involve risks, and potential rewards can be uncertain. The success and future of Pi will depend on the collective efforts of its team, community, and the broader cryptocurrency market dynamics. It's advisable to stay updated on Pi's development and follow any updates from the official Pi Network website or announcements from the team.
how to sell pi coins at high rate quickly.DOT TECH
Where can I sell my pi coins at a high rate.
Pi is not launched yet on any exchange. But one can easily sell his or her pi coins to investors who want to hold pi till mainnet launch.
This means crypto whales want to hold pi. And you can get a good rate for selling pi to them. I will leave the telegram contact of my personal pi vendor below.
A vendor is someone who buys from a miner and resell it to a holder or crypto whale.
Here is the telegram contact of my vendor:
@Pi_vendor_247
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
US Economic Outlook - Being Decided - M Capital Group August 2021.pdfpchutichetpong
The U.S. economy is continuing its impressive recovery from the COVID-19 pandemic and not slowing down despite re-occurring bumps. The U.S. savings rate reached its highest ever recorded level at 34% in April 2020 and Americans seem ready to spend. The sectors that had been hurt the most by the pandemic specifically reduced consumer spending, like retail, leisure, hospitality, and travel, are now experiencing massive growth in revenue and job openings.
Could this growth lead to a “Roaring Twenties”? As quickly as the U.S. economy contracted, experiencing a 9.1% drop in economic output relative to the business cycle in Q2 2020, the largest in recorded history, it has rebounded beyond expectations. This surprising growth seems to be fueled by the U.S. government’s aggressive fiscal and monetary policies, and an increase in consumer spending as mobility restrictions are lifted. Unemployment rates between June 2020 and June 2021 decreased by 5.2%, while the demand for labor is increasing, coupled with increasing wages to incentivize Americans to rejoin the labor force. Schools and businesses are expected to fully reopen soon. In parallel, vaccination rates across the country and the world continue to rise, with full vaccination rates of 50% and 14.8% respectively.
However, it is not completely smooth sailing from here. According to M Capital Group, the main risks that threaten the continued growth of the U.S. economy are inflation, unsettled trade relations, and another wave of Covid-19 mutations that could shut down the world again. Have we learned from the past year of COVID-19 and adapted our economy accordingly?
“In order for the U.S. economy to continue growing, whether there is another wave or not, the U.S. needs to focus on diversifying supply chains, supporting business investment, and maintaining consumer spending,” says Grace Feeley, a research analyst at M Capital Group.
While the economic indicators are positive, the risks are coming closer to manifesting and threatening such growth. The new variants spreading throughout the world, Delta, Lambda, and Gamma, are vaccine-resistant and muddy the predictions made about the economy and health of the country. These variants bring back the feeling of uncertainty that has wreaked havoc not only on the stock market but the mindset of people around the world. MCG provides unique insight on how to mitigate these risks to possibly ensure a bright economic future.
what is the best method to sell pi coins in 2024DOT TECH
The best way to sell your pi coins safely is trading with an exchange..but since pi is not launched in any exchange, and second option is through a VERIFIED pi merchant.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and pioneers and resell them to Investors looking forward to hold massive amounts before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade pi coins with.
@Pi_vendor_247
NO1 Uk Black Magic Specialist Expert In Sahiwal, Okara, Hafizabad, Mandi Bah...Amil Baba Dawood bangali
Contact with Dawood Bhai Just call on +92322-6382012 and we'll help you. We'll solve all your problems within 12 to 24 hours and with 101% guarantee and with astrology systematic. If you want to take any personal or professional advice then also you can call us on +92322-6382012 , ONLINE LOVE PROBLEM & Other all types of Daily Life Problem's.Then CALL or WHATSAPP us on +92322-6382012 and Get all these problems solutions here by Amil Baba DAWOOD BANGALI
#vashikaranspecialist #astrologer #palmistry #amliyaat #taweez #manpasandshadi #horoscope #spiritual #lovelife #lovespell #marriagespell#aamilbabainpakistan #amilbabainkarachi #powerfullblackmagicspell #kalajadumantarspecialist #realamilbaba #AmilbabainPakistan #astrologerincanada #astrologerindubai #lovespellsmaster #kalajaduspecialist #lovespellsthatwork #aamilbabainlahore#blackmagicformarriage #aamilbaba #kalajadu #kalailam #taweez #wazifaexpert #jadumantar #vashikaranspecialist #astrologer #palmistry #amliyaat #taweez #manpasandshadi #horoscope #spiritual #lovelife #lovespell #marriagespell#aamilbabainpakistan #amilbabainkarachi #powerfullblackmagicspell #kalajadumantarspecialist #realamilbaba #AmilbabainPakistan #astrologerincanada #astrologerindubai #lovespellsmaster #kalajaduspecialist #lovespellsthatwork #aamilbabainlahore #blackmagicforlove #blackmagicformarriage #aamilbaba #kalajadu #kalailam #taweez #wazifaexpert #jadumantar #vashikaranspecialist #astrologer #palmistry #amliyaat #taweez #manpasandshadi #horoscope #spiritual #lovelife #lovespell #marriagespell#aamilbabainpakistan #amilbabainkarachi #powerfullblackmagicspell #kalajadumantarspecialist #realamilbaba #AmilbabainPakistan #astrologerincanada #astrologerindubai #lovespellsmaster #kalajaduspecialist #lovespellsthatwork #aamilbabainlahore #Amilbabainuk #amilbabainspain #amilbabaindubai #Amilbabainnorway #amilbabainkrachi #amilbabainlahore #amilbabaingujranwalan #amilbabainislamabad
If you are looking for a pi coin investor. Then look no further because I have the right one he is a pi vendor (he buy and resell to whales in China). I met him on a crypto conference and ever since I and my friends have sold more than 10k pi coins to him And he bought all and still want more. I will drop his telegram handle below just send him a message.
@Pi_vendor_247
how to sell pi coins in South Korea profitably.DOT TECH
Yes. You can sell your pi network coins in South Korea or any other country, by finding a verified pi merchant
What is a verified pi merchant?
Since pi network is not launched yet on any exchange, the only way you can sell pi coins is by selling to a verified pi merchant, and this is because pi network is not launched yet on any exchange and no pre-sale or ico offerings Is done on pi.
Since there is no pre-sale, the only way exchanges can get pi is by buying from miners. So a pi merchant facilitates these transactions by acting as a bridge for both transactions.
How can i find a pi vendor/merchant?
Well for those who haven't traded with a pi merchant or who don't already have one. I will leave the telegram id of my personal pi merchant who i trade pi with.
Tele gram: @Pi_vendor_247
#pi #sell #nigeria #pinetwork #picoins #sellpi #Nigerian #tradepi #pinetworkcoins #sellmypi
how to sell pi coins in all Africa Countries.DOT TECH
Yes. You can sell your pi network for other cryptocurrencies like Bitcoin, usdt , Ethereum and other currencies And this is done easily with the help from a pi merchant.
What is a pi merchant ?
Since pi is not launched yet in any exchange. The only way you can sell right now is through merchants.
A verified Pi merchant is someone who buys pi network coins from miners and resell them to investors looking forward to hold massive quantities of pi coins before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
Introduction to Indian Financial System ()Avanish Goel
The financial system of a country is an important tool for economic development of the country, as it helps in creation of wealth by linking savings with investments.
It facilitates the flow of funds form the households (savers) to business firms (investors) to aid in wealth creation and development of both the parties
Resume
• Real GDP growth slowed down due to problems with access to electricity caused by the destruction of manoeuvrable electricity generation by Russian drones and missiles.
• Exports and imports continued growing due to better logistics through the Ukrainian sea corridor and road. Polish farmers and drivers stopped blocking borders at the end of April.
• In April, both the Tax and Customs Services over-executed the revenue plan. Moreover, the NBU transferred twice the planned profit to the budget.
• The European side approved the Ukraine Plan, which the government adopted to determine indicators for the Ukraine Facility. That approval will allow Ukraine to receive a EUR 1.9 bn loan from the EU in May. At the same time, the EU provided Ukraine with a EUR 1.5 bn loan in April, as the government fulfilled five indicators under the Ukraine Plan.
• The USA has finally approved an aid package for Ukraine, which includes USD 7.8 bn of budget support; however, the conditions and timing of the assistance are still unknown.
• As in March, annual consumer inflation amounted to 3.2% yoy in April.
• At the April monetary policy meeting, the NBU again reduced the key policy rate from 14.5% to 13.5% per annum.
• Over the past four weeks, the hryvnia exchange rate has stabilized in the UAH 39-40 per USD range.
USDA Loans in California: A Comprehensive Overview.pptxmarketing367770
USDA Loans in California: A Comprehensive Overview
If you're dreaming of owning a home in California's rural or suburban areas, a USDA loan might be the perfect solution. The U.S. Department of Agriculture (USDA) offers these loans to help low-to-moderate-income individuals and families achieve homeownership.
Key Features of USDA Loans:
Zero Down Payment: USDA loans require no down payment, making homeownership more accessible.
Competitive Interest Rates: These loans often come with lower interest rates compared to conventional loans.
Flexible Credit Requirements: USDA loans have more lenient credit score requirements, helping those with less-than-perfect credit.
Guaranteed Loan Program: The USDA guarantees a portion of the loan, reducing risk for lenders and expanding borrowing options.
Eligibility Criteria:
Location: The property must be located in a USDA-designated rural or suburban area. Many areas in California qualify.
Income Limits: Applicants must meet income guidelines, which vary by region and household size.
Primary Residence: The home must be used as the borrower's primary residence.
Application Process:
Find a USDA-Approved Lender: Not all lenders offer USDA loans, so it's essential to choose one approved by the USDA.
Pre-Qualification: Determine your eligibility and the amount you can borrow.
Property Search: Look for properties in eligible rural or suburban areas.
Loan Application: Submit your application, including financial and personal information.
Processing and Approval: The lender and USDA will review your application. If approved, you can proceed to closing.
USDA loans are an excellent option for those looking to buy a home in California's rural and suburban areas. With no down payment and flexible requirements, these loans make homeownership more attainable for many families. Explore your eligibility today and take the first step toward owning your dream home.
USDA Loans in California: A Comprehensive Overview.pptx
A Report on the Punjab National Bank Scam (Nirav Modi)
1. A Report on the PNB Scam
Name of the college: - Don Bosco Institute of Management and Research
Subject: - Legal Aspects of Tax
Faculty: - Prof.B.D.DHONGADE
Name: - Yohan D’souza
Roll no: - 12
2. Table of Contents
1. Introduction
1.1 Who are the key people involved in the scam?
1.2 Who is Nirav Modi?
1.3 About Punjab National Bank (PNB)
2. What is this fraud about?
2.1 The money involved
2.2 What is Letters of Understanding (LOU)?
2.3 What is SWIFT?
2.4 What is CBS?
2.5 Why is the CBS/SWIFT integration important?
2.6 Fake LoUs were issued
2.7 Locations of NOSTRO accounts
2.8 How did this scam come to light?
3. Who bears the brunt?
4. Loose ends
5. Conclusion
5.1 What comes next
6. Bibliography
7.
3. 1. Introduction
On the 14th
of February which was Valentine’s Day, one of India’s biggest banks
disclosed a $1.77 billion fraud allegedly by one of the country’s richest man. A man
who deals in pearls and diamonds. Shares of the lender, Punjab National Bank
(PNB), plunged on the news, dragging down other lenders when it said that the scam
may extend to multiple banks. The scam became public after a First Information
Report (FIR) was filed by a PNB official against other bank employees for the issue
of fraudulent Letters of Undertaking (LoU’s) to Nirav Modi’s firms. Later, a fraud
report filed by PNB revealed that the scam amount was much higher. Here is what
we know about the case:
1.1 Who are the key people involved in the scam?
In its complaint to CBI (Central Bureau of Investigation) -- PNB alleged that the fraud
was led by Nirav Modi, a jeweller who’s dressed Hollywood and Bollywood actors
including Kate Winslet and Priyanka Chopra. Modi is 85th on Forbes’s 2017 list of
India’s richest people and, at 47, is one of the youngest. Let us look further into who
Nirav Modi is.
1.2 Who is Nirav Modi?
Nirav Modi (born 1970/71) is a businessman, and the founder of ‘Nirav Modi’ global
diamond jewellery house established in 2010. Born into a Gujarati family, Modi
founded Firestar Diamond and has a booming retail business across top cities of the
world including Delhi, Mumbai, New York, London, Hong Kong and Macau. In 2015,
the inauguration of his first store in New York’s Madison Avenue was attended by
Donald Trump, Fortune India reported. Modi’s retail market presence has expanded
in recent years marking him as one of the youngest Indians in the Forbes Billionaires
List 2017.
While his family was in India, the billionaire businessman grew up in Belgium, which
is known as the Centre for international refined diamond trade. Though he went to
4. Wharton Business School, he dropped out and moved to India to train in the
diamond trade under his uncle. Years later, he started the ‘Nirav Modi’ jewellery
brand and is known to have rich clients in the international market featuring high-end
jewellery collections. Last year, Bollywood actress Priyanka Chopra was also roped
in to be the global ambassador for the Nirav Modi brand.
1.3 About Punjab National Bank (PNB)
Punjab National Bank, popularly called P. N. B., initially started its business on 12th
April of the year 1895. With their mission to provide banking services to the un-
banked, they aim to be the leading player in global banking. Over the time, they have
become a known name, especially in the Indo-Gangetic plains. The huge network of
this bank includes over 5, 100 offices, which include 5 overseas branches and more
than 60 million customers. This bank has continued to maintain their leadership
position for its strong fundamentals, superior brand image as well as huge franchise
value.
5. 2. What is this fraud about?
It began with diamond firms approaching PNB for opening letters of credit for import
of rough stones. As per the terms of the LoC, a common banking tool, PNB would
pay the overseas suppliers on behalf of Nirav Modi’s firms within a certain period
(typically three months) and recover the money from Modi. It’s a market practice to
extend the LoC if the client (i.e., NM) is unable to cough up the money at the end of
the LoC tenure.
2.1 The money involved
The fraud amount adds up to ₹11,394 crore, based on PNB’s February 12th
intimation to the stock exchanges. This can be broken up into the following:
₹6,228cr - Fraud amount which appears to have accrued before 2017
₹280cr - Amount issued through 8 LoUs due for payment on 25th
January,
2018
₹3,032cr - Value of 143 fraudulent LoUs issued to the Gitanjali Group of
companies between March 1st
and May 2nd
, 2017
₹1,854cr – Unauthorised Letters of Credit that were also issued to the
Gitanjali Group of companies
Later the bank informed that this amount could rise by ₹1,330 crore. The CBI FIR
reports lists out fraudulent LoUs and LoCs issued in 2017 amounting to ₹5,166
crore. The rest, amounting to over ₹6,000 crore, appear to have been issued
between 2011 and 2016.
2.2 What is Letters of Understanding (LOU)?
Letters of Understanding or LoU refers to the bank guarantee issuing for overseas
import payments. In short it enables the payment of the customer’s offshore
suppliers in foreign currency. If the importer fails to make the payment on the due
date, the bank honours the commitment. Hence while issuing a LoU, a bank agrees
6. to the client to repay the principal and interest unconditionally. Here, the bank allows
the customer to raise money from another Indian bank’s foreign branch, in the form
of a short-term credit. Through LoU, one bank tells another they would meet
customer’s liability.
The customer has to pay some margin money (cash margin) to the bank issuing the
LoU (usually 100%) and he will be granted a credit limit. But in this case, there was
no credit limit and Nirav Modi did not give margin money. Nirav Modi’s three firms-
Diamond R Us, Solar Exports and Stellar Diamonds managed to pay rough stones to
its customers on a regular basis. The payment was made through loans by different
banks including Allahabad Bank, and Axis Bank. Modi’s firms raised the loans by
showing the LoUs issued by the PNB. But there was no official record of any Letters
of Understandings in the PNB.
In a situation when a customer fails to repay the loan, the bank issuing the LoU have
to pay all these banks that give loans to a borrower on the basis of the LoU issued
by the lender.
A complaint was filed by PNB with the CBI accusing Nirav Modi and others of
defrauding the bank and causing loss of ₹280 crore. The PNB, according to a report
by the Scroll, has said that it would repay back the liabilities they were responsible
for.
2.3 What is SWIFT?
It is a messaging network for securely transmitting instructions for all financial
transactions through a standardised system of codes. The instructions regarding
LoU is sent through a system called Society for Worldwide Interbank Financial
Telecommunication (SWIFT). This system is trusted by all other banks since it has to
be endorsed a supervisor. According to the note by PNB, junior level branch official
sent instructions to the foreign branches behalf of the PNB which was unnoticed by
the bank.
2.4 What is CBS?
7. CBS stands for the Core Banking System where all branches are interconnected. It
enables customers to operate their accounts to avail banking services from any
branch of the bank on CBS network. The customer here comes to the bank’s
customer and no more acts as a branch customer. Customers of CBS branches will
get all the banking facilities from any other CBS branch from anywhere in the world.
In CBS all the transactions are updated on a real-time basis. The PNB could not
detect the fraud since the official did not route the transactions through CBS.
Together the SWIFT and the CBS need to be integrated properly.
2.5 Why is the CBS/SWIFT integration important?
Normally a credit limit is first set in the CBS, which in turn triggers SWIFT messages
confirming the bank’s commitment – in this case the guarantee it extends through
LoUs, Non - integration of SWIFT and CBS in the case of PNB has allowed stand-
alone messages to be sent out without making entries in the CBS.
2.6 Fake LoUs were issued
This is done on the basis of Letters of Undertaking (LoUs) given by the local bank
(which in this case is PNB).
PNB employees issued fake LoUs, on the back of which foreign branches of a few
Indian banks — including Axis and Allahabad Bank — gave dollar loans to PNB.
These foreign currency loans were used to fund PNB’s NOSTRO accounts and from
these accounts funds moved to certain overseas parties. A ‘NOSTRO’ account is an
account which banks maintain foreign currency stocks in the form of bank accounts
with their overseas branches; these are called NOSTRO accounts.
Based on unauthorized LoUs, the PNB employees misused the SWIFT network to
transmit messages to Allahabad Bank and Axis Bank on fund requirement. In using
SWIFT, one has to log into the network to fill up fields like the account number and
SWIFT code, following which it is endorsed by a supervisor. The process is
completed when the bank receiving the message confirms and the details are
8. validated. While all this was done using SWIFT passwords, the transactions were
never recorded in the bank’s core system — thus keeping the PNB management in
the dark for a long time.
The other question that crops up is: who were the suppliers? In the closely-knit world
of diamonds, the overseas suppliers of rough stones and the final exporters of
diamonds are often members of the clan, if not same family. According to PNB’s
statement to enforcement agencies, the funds so raised for payment of import bills
have not been utilized for such purposes in many cases.
According to banking circles, PNB will have to make good the lost money even
though technically Allahabad Bank and Axis Bank took the exposure. “It is not known
whether Axis and Allahabad still have the loans on their books or they have offloaded
some of it to other banks,” said another banker.
According to a confidential note from PNB to some banks, similar modus operandi
was used by the same officials in companies belonging to Mehul Choksi - promoted
Gitanjali Gems, Gili India and Nakshatra, while issuing LoUs/ LoCs. The transactions
were initially routed through the CBS system but subsequently changes were made
in the LCs by substantially increasing the amount and transmitted through SWIFT
without reporting this to CBS.
According to the note, LoUs were opened for pearl import for which total time period
allowed by RBI is 90 days. Some of the overseas branches of Indian banks
overlooked the rule. PNB has alleged “clear criminal connivance” of group
companies of Modi and Gitanjali with some officials of PNB and other banks. In what
could lead to a feud between PNB and other Indian banks, the former has
complained that some of the branches of other Indian banks have not shared key
documents related to the credit with PNB. ..
It appears the overseas buyers’ credit against LoUs was used to retire import bills or
replenish maturing credit.
Allahabad Bank has also issued a confidential note to other banks on the modus
operandi of the fraud.
2.7 Locations of NOSTRO Accounts
9. Most large commercial banks worldwide hold NOSTRO accounts in every country
with a convertible currency. Major examples of convertible currencies are the U.S.
dollar, Canadian dollar, British pound, the European euro and the Japanese yen.
Prior to the advent of the euro as a currency for financial settlements on January 1,
1999, banks needed to hold NOSTRO accounts in all of the countries that now use
the euro. Since that date, one NOSTRO for the entire euro zone has been sufficient.
If a country were to leave the Eurozone, either voluntarily or involuntarily, banks
would need to re-establish NOSTROs in that country in its new currency in order to
continue making payments. The most commonly discussed potential exit from the
euro zone has been Greece, which received multiple bailout packages since the
beginning of the 2008 financial market crisis.
2.8 How did this scam come to light?
It came to light last month, when representatives of Modi’s companies approached
PNB for a fresh loan, PNB said in its complaint, the details of which have been made
public.
By then, Shetty had retired and his successor declined to honour Modi’s request. “At
this, the firms contested that they have been availing this facility in the past also but
the branch records did not reveal details of any such facility,” PNB said in the
complaint. This was when it discovered the fake letters of undertaking and filed an
initial complaint alleging a $44 million fraud. Two weeks later, it filed another
complaint covering transactions worth about $1.77 billion ($1,771,690 million),
according to people familiar with the matter. On February 26th
, it reported that the
scam amount could go up by $204 million.
3. WHO BEARS THE BRUNT?
10. PNB is in talks with other banks and liabilities will be decided after the probe, PNB
Chief Executive Officer Sunil Mehta told reporters on Thursday. He added that PNB
will follow the regulator’s instructions on repayment.
The Reserve Bank of India (RBI) hasn’t responded to emails seeking comment and
hasn’t publicly commented on the case.
PNB has alleged that the money was used either to retire import bills or replenish
maturing lines of credit with some other banks, according to the document seen by
Bloomberg. In its public complaint, PNB names the Hong Kong branches of Axis
Bank Ltd. and Allahabad Bank as the overseas counterparties.
Allahabad Bank has exposure of about Rs 40 billion while Axis Bank has a roughly
Rs 30 billion exposure, a person familiar with the matter told reporters in New Delhi.
Union Bank has about Rs 20 billion exposure with rest accounted to State Bank of
India, the person said, asking not to be named as the information isn’t public.
Axis Bank told the exchanges on Thursday that the transactions were undertaken in
the normal course of business and credited to PNB’s NOSTRO accounts. It added it
has "sold down all of the referred transactions.”
4. Loose Ends
If the integration between SWIFT and CBS is not smooth, or if it is not done, banks
have to regularly reconcile NOSTRO accounts immediately on receipt of the
statements from the correspondent banks with NOSTRO mirror balances.
According to bankers, most banks receive NOSTRO account statements through
SWIFT MT940 and MT950. Banks without SWIFT get a soft copy of the statement
11. either by email or a hardcopy delivered from the local branch of the correspondent
bank. Reconciliation or can be automated through specialised solutions.
Despite integration, according to the CBI FIR filed by PNB dated February 15th
,
2018, along with unauthorised LoUs amounting to ₹3,032 crore, the bank officials
had also issued fraudulent LoCs amounting to ₹1,854 crore to the Gitanjali Group of
companies.
The conniving officer issued LoCs by entering a smaller amount in the trade finance
module of the CBS system and generated the reference number; a SWIFT message
was sent for the amount. Subsequently, without making any change in the CBS, the
bank officials sent modified SWIFT messages for an enhanced amount under the
same reference to the beneficiary bank.
The overseas supplier discounted the documents drawn under such LoCs (based on
the SWIFT message) with overseas banks.
As this illustrates, a failure of all control, systems and check can lead to fraud,
irrespective of software systems.
12. 5. CONCLUSION
5.1 What comes next?
Government has asked all banks to send reports involving this case or other such
incidents latest by the end of this week, the PTI reported.
PNB’s CEO said Modi has reached out to PNB to present a repayment plan but the
bank has sought more details. Nirav Modi had left India even before the CBI
complaint was filed, according to media reports that didn’t cite any people.
The Punjab National Bank (PNB) today suspended eight more employees in
connection with ₹14,400 crore fraudulent transactions case involving billionaire
jeweller designer Nirav Modi.
The passport issuing authority of the Ministry of External Affairs (MEA) has also
suspended validity of passports of Nirav Modi and his business partner Mehul
Choksi for a period of four weeks.
The Enforcement Directorate today conducted multiple searches in connection with
another ₹280 crore money laundering case against Nirav Modi and others following
a complaint by Punjab National Bank, PTI reported. PTI quoted official sources as
saying that the agency sleuths swooped down on at least 10 premises of entities
involved in the case early morning.
On Wednesday, the agencies had seized jewellery, gold and other assets worth
₹6,400 crore linked to Nirav Modi in connection with the PNB fraud case. The ED
had also issued summons to Nirav Modi and Mehul Choksi.
According to sources, Nirav Modi is presently staying in New York along with his wife
Ami. His brother Nishal Modi is believed to be in Belgium.