The document provides an overview of the PNB scam involving issuance of fraudulent letters of undertaking by PNB bank officials to Nirav Modi and Mehul Choksi without cash margins or securities, leading to losses of over 11400 crore for PNB. Key players in the scam included Nirav Modi, Mehul Choksi, and several PNB employees. Major causes of the failure included flaws in the bank's governance systems and controls related to SWIFT transactions not being linked to the core banking system. Consequences included a sharp drop in PNB's share price and ratings downgrades. Recommendations focused on improving risk management, auditing, supervision and compliance.
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 place WE DON’T KNOW But 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.........
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.
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 place WE DON’T KNOW But 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.........
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.
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.
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
Sahara - SEBI case is the case of the issuance of Optionally Fully Convertible Debentures issued by the two companies of Sahara India Pariwar to which Securities and Exchange Board of India had claimed its jurisdiction and objected on why Sahara has not taken permission from it. Sahara has claimed that the said bonds are hybrid product, thus does not come under the jurisdiction of SEBI, instead is governed by Registrar of Companies (ROC) under Ministry of Corporate Affairs, from which the two companies of Sahara has already taken permission and submitted the red herring prospectus with ROC before issuing the bonds.
Does Corporate Governance really stays the same in the reality as it's been explained to students...?
Such cases really raise many questions on that note.
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
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
Sahara - SEBI case is the case of the issuance of Optionally Fully Convertible Debentures issued by the two companies of Sahara India Pariwar to which Securities and Exchange Board of India had claimed its jurisdiction and objected on why Sahara has not taken permission from it. Sahara has claimed that the said bonds are hybrid product, thus does not come under the jurisdiction of SEBI, instead is governed by Registrar of Companies (ROC) under Ministry of Corporate Affairs, from which the two companies of Sahara has already taken permission and submitted the red herring prospectus with ROC before issuing the bonds.
Does Corporate Governance really stays the same in the reality as it's been explained to students...?
Such cases really raise many questions on that note.
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
NPA’s have reached over 10 lakh crore.
Credit off-take is in single digits.
Over a dozen banks have been classified as potential weak banks.
NBFC’s are facing Asset-Liability mismatches.
Liquidity has shrunk.
Capital has become scarce.
The government is going for consolidation of PSB’s
Loss of confidence in NBFCs ( 15% of banking system)
Systemic risk caused by huge borrowings of NBFCs.
The most significant problem is Bad Loans.
FEMALE SECURITY - A MATTER OF MAJOR CONCERNNeha Sharma
The recent incidents in Delhi followed by the mass protests at India Gate and all across the nation have brought to light a major threat to safety and security of females in the country. The profession of Chartered Accountancy consists of a substantial number of female members and about 50% CA students are also female.
Indian economy towards growth momentum strategic moves neededNeha Sharma
In a recent international survey Indian economy has been rated as the 3rd largest economy of the world, after USA and China, on the basis of Purchase Power Parity (PPP). IMF has also projected a smart recovery of growth rate of Indian GDP to around 5.5% to 6% in next 2 years.
Indian economy towards growth momentum strategic moves neededNeha Sharma
In a recent international survey Indian economy has been rated as the 3rd largest economy of the world, after USA and China, on the basis of Purchase Power Parity (PPP). IMF has also projected a smart recovery of growth rate of Indian GDP to around 5.5% to 6% in next 2 years.
Large Bank Borrowers - Are they willful defaultersNeha Sharma
The RBI advisory for mandatory provisions of Non-Performing Assets and inclusion of most of the top borrowers in the list of 150 groups covering lakhs of crores of borrowings has brought to surface a very major issue.
Enterslice help you to Incorporate NBFC Company in india.we also provide software to manage NBFC Business like NBFC Software,NBFC-ND Compilance,Money Changer Compilance,funding in NBFC and takeover of NBFC.
BASEL CORE PRINCIPLES FOR EFFECTIVE BANKING SUPERVISION DETAILED ASSESSMENTJalaj Jain
The Reserve Bank of India (RBI) is to be commended for its tightly controlled
regulatory and supervisory regime, consisting of higher than minimum capital
requirements, frequent, hands-on and comprehensive onsite inspections, a conservative
liquidity risk policy and restrictions on banks’ capacity to take on more volatile
exposures. The Indian banking system remained largely stable during the global financial
crisis. Since then, the government of India and RBI have taken additional measures to
enhance the soundness and resilience of the banking system, such as the establishment of a
Financial Stability and Development Council (FSDC), the implementation of a
countercyclical provisioning regime, and the development of a roadmap for the introduction
of a holding company structure.
Introduction to AI for Nonprofits with Tapp NetworkTechSoup
Dive into the world of AI! Experts Jon Hill and Tareq Monaur will guide you through AI's role in enhancing nonprofit websites and basic marketing strategies, making it easy to understand and apply.
Welcome to TechSoup New Member Orientation and Q&A (May 2024).pdfTechSoup
In this webinar you will learn how your organization can access TechSoup's wide variety of product discount and donation programs. From hardware to software, we'll give you a tour of the tools available to help your nonprofit with productivity, collaboration, financial management, donor tracking, security, and more.
June 3, 2024 Anti-Semitism Letter Sent to MIT President Kornbluth and MIT Cor...Levi Shapiro
Letter from the Congress of the United States regarding Anti-Semitism sent June 3rd to MIT President Sally Kornbluth, MIT Corp Chair, Mark Gorenberg
Dear Dr. Kornbluth and Mr. Gorenberg,
The US House of Representatives is deeply concerned by ongoing and pervasive acts of antisemitic
harassment and intimidation at the Massachusetts Institute of Technology (MIT). Failing to act decisively to ensure a safe learning environment for all students would be a grave dereliction of your responsibilities as President of MIT and Chair of the MIT Corporation.
This Congress will not stand idly by and allow an environment hostile to Jewish students to persist. The House believes that your institution is in violation of Title VI of the Civil Rights Act, and the inability or
unwillingness to rectify this violation through action requires accountability.
Postsecondary education is a unique opportunity for students to learn and have their ideas and beliefs challenged. However, universities receiving hundreds of millions of federal funds annually have denied
students that opportunity and have been hijacked to become venues for the promotion of terrorism, antisemitic harassment and intimidation, unlawful encampments, and in some cases, assaults and riots.
The House of Representatives will not countenance the use of federal funds to indoctrinate students into hateful, antisemitic, anti-American supporters of terrorism. Investigations into campus antisemitism by the Committee on Education and the Workforce and the Committee on Ways and Means have been expanded into a Congress-wide probe across all relevant jurisdictions to address this national crisis. The undersigned Committees will conduct oversight into the use of federal funds at MIT and its learning environment under authorities granted to each Committee.
• The Committee on Education and the Workforce has been investigating your institution since December 7, 2023. The Committee has broad jurisdiction over postsecondary education, including its compliance with Title VI of the Civil Rights Act, campus safety concerns over disruptions to the learning environment, and the awarding of federal student aid under the Higher Education Act.
• The Committee on Oversight and Accountability is investigating the sources of funding and other support flowing to groups espousing pro-Hamas propaganda and engaged in antisemitic harassment and intimidation of students. The Committee on Oversight and Accountability is the principal oversight committee of the US House of Representatives and has broad authority to investigate “any matter” at “any time” under House Rule X.
• The Committee on Ways and Means has been investigating several universities since November 15, 2023, when the Committee held a hearing entitled From Ivory Towers to Dark Corners: Investigating the Nexus Between Antisemitism, Tax-Exempt Universities, and Terror Financing. The Committee followed the hearing with letters to those institutions on January 10, 202
Embracing GenAI - A Strategic ImperativePeter Windle
Artificial Intelligence (AI) technologies such as Generative AI, Image Generators and Large Language Models have had a dramatic impact on teaching, learning and assessment over the past 18 months. The most immediate threat AI posed was to Academic Integrity with Higher Education Institutes (HEIs) focusing their efforts on combating the use of GenAI in assessment. Guidelines were developed for staff and students, policies put in place too. Innovative educators have forged paths in the use of Generative AI for teaching, learning and assessments leading to pockets of transformation springing up across HEIs, often with little or no top-down guidance, support or direction.
This Gasta posits a strategic approach to integrating AI into HEIs to prepare staff, students and the curriculum for an evolving world and workplace. We will highlight the advantages of working with these technologies beyond the realm of teaching, learning and assessment by considering prompt engineering skills, industry impact, curriculum changes, and the need for staff upskilling. In contrast, not engaging strategically with Generative AI poses risks, including falling behind peers, missed opportunities and failing to ensure our graduates remain employable. The rapid evolution of AI technologies necessitates a proactive and strategic approach if we are to remain relevant.
How to Make a Field invisible in Odoo 17Celine George
It is possible to hide or invisible some fields in odoo. Commonly using “invisible” attribute in the field definition to invisible the fields. This slide will show how to make a field invisible in odoo 17.
Macroeconomics- Movie Location
This will be used as part of your Personal Professional Portfolio once graded.
Objective:
Prepare a presentation or a paper using research, basic comparative analysis, data organization and application of economic information. You will make an informed assessment of an economic climate outside of the United States to accomplish an entertainment industry objective.
The French Revolution, which began in 1789, was a period of radical social and political upheaval in France. It marked the decline of absolute monarchies, the rise of secular and democratic republics, and the eventual rise of Napoleon Bonaparte. This revolutionary period is crucial in understanding the transition from feudalism to modernity in Europe.
For more information, visit-www.vavaclasses.com
3. CONTENTS
- Overview of the company
- Introduction to PNB Fraud
- Key Players
- Major Causes of Company Failure
- Flaws in Corporate Governance
- Consequences of Collapse
- Conclusion & Recommendations
- References
4. INTRODUCTION
Indian multinational bank & financial
service company
Founded in 1894, in Lahore
Nationalized on 19th July 1969
Over 80 million customers, 6937
branches, and 10681 ATMs across 764
cities
5. WHAT IS THE
PNB SCAM
Issuance of fraudulent letters of
undertaking (LOUs) by the bank
after Choksi, the Modis and others
colluded with bank officials.
The LOUs were issued without any
cash margins or securities, leading to
heavy losses for the PSU bank.
6. PNB employee
allegedly starts
providing
fraudulent
letters of
understanding
to Modi and his
associates.
PNB reported
this scam of
approx 11400 cr
in feb'18
PNB employees
misused the
SWIFT network
and the
transactions
were never
recorded in the
bank’s core
system
By the time the
PNB realised,
Neerav Modi
had escaped the
country
SCAM IN DETAIL
7. Ami Modi
Nirav Modi's Wife
Nirav Modi
Owner of Diamond Business
Chain
Nishal Modi
Nirav Modi's Brother-in-Law
Key Players Involved in the Scam
Mehul Choksi
Nirav Modi's Maternal Uncle, Owner of
Geetanjali Group
PNB Employees
Gokul Nath Shetty & Manoj
Kharat
9. SWIFT CODE
Messaging Network for securely transmitting
instructions for all financial transactions through
standardised coding system
These codes are used when transferring money between
banks, in particular for international wire transfers or SEPA
payments.
Banks also use these codes to exchange messages between
each other.
FORMAT OF A SWIFT
CODE
10. The LoUs are sent to foreign branch of the lending bank through SWIFT.
This process involves three senior managerial bank officials - who act as "maker",
"verifier" and "authoriser" In the case of the PNB fraud, only one person - acted
in these capacities.
The SWIFT transactions are done through the core banking solution (CBS)
system, which records all the transactions of all such customers for all bank
branches that are involved in the process.
In the PNB fraud case, bank officials involved in fraudulent LoUs, delinked CBS
from SWIFT transactions.
Indian Banking Operations department failed to take note of CBS-SWIFT
delinking for nearly seven years.
The lending bank branch that gives actual loan against the guarantee of LoU by
the issuing bank writes to the controlling office of the latter to confirm realisation
of LoU. But, the PNB has claimed that it received no such request from the
lending foreign branches.
NON-LINKAGE BETWEEN SWIFT AND CBS
11. Other Causes of Company
Failure
Failure of
Auditors
No rotation of
Employees
Management
Failure
12. Flaws in Corporate Governance
NOT FOLLOWING
CORPORATE
GOVERNANCE
NORMS
Issued LOU for 365 days
without making any
provisions for collateral
and by passing Core
Banking System (CBS).
AUDIT COMMITEE
FAILURE
The auditor
deliberately didn't
verify the transactions
done through swift.
13. Flaws in Corporate Governance
MISLEADING THE
BANK
Allegedly delinked
SWIFT from CBS in the
case of companies that
were linked to Nirav
Modi and Mehul Choksi.
MANAGEMENT
FAILURE
PNB employees misused
the SWIFT network to
transmit messages to
Allahabad Bank and
Axis Bank on fund
requirement.
15. PNB share price falls 55% in
five months from ₹160 to
₹73.65
The RBI stops banks to issue
LOU.
The NSE PSU Bank Index
was also down 21 % during
the same period.
Aftermath of Scam
Banks to link their Core
Banking Systems to the
SWIFT.
16. RBI has said to PNB to pay all debts to
other banks
Moody's and Fitch places PNB under
reveiw for downgrade.Moody's has
rated PNB 'Baa3' and Fitch has rated
'bb'.
Several PNB officials were arrested.
This put the approximately rupees 8
trillions worth of bad loan stockpile of
the banking sector in the spotlight.
17. CONCLUSION
The PNB scam has left a more than a noticeable dent on India’s banking sector.
A positive outcome of this is that the government is more watchful and
attuned to the banking sector and its various happenings. The scam also gives
both the government and the reserve bank the opportunity to enact reforms.
While the Fugitive Economic Offenders Act is certainly a good start, it must
not be the only legislation enacted in this regard. It is crucial that we continue
to push for reform in the banking sector, so as to prevent old and well-
established banks like the PNB from having their reputations soiled in the
coming future.
18. The impact of frauds on entities like banks and the economic
cost of frauds can be huge in terms of likely disruptionin the
working of the markets, financial institutions, and the payment
system.
Besides, these scams can have a potentially weakening effect on
confidence in the banking system and may damage the integrity
and stability of the economy.
It can bring down banks, undermine the central bank's
supervisory role and even create social unrest, discontent and
political violence.
The passiveness of banks to fraud has been heightened by
technological advancements in recent times.
19. Recommendations
Banks need to better manage their operational risks, essentially in the
realm of credit, market and operation risks.
It has to be understood that various agencies also need to make changes to
their existing behavioural patterns and attitudes in the field, they must
immediately sharpen and update their skills and knowledge of the banking
business.
Internal, as well as statutory, auditors must be capable and also willing to
highlight any inadequate processes or potential malpractices being followed
by a banking institution. Even if certain specific transactions may manage to
slip away undetected, the checking of the loan approval process and its
issuance is a must which auditors have to take accountability for.
20. It is undeniable that The Reserve Bank of India (RBI) has been efficient in
issuing all the requisite guidelines pertaining to CR, MR and OR. However, it
also needs to promote better discipline in OR as so as to ensure better
success in its supervisory duties. Moreover, The process of reporting Red
Flagged Accounts (RFA) needs to be tested to see whether the correct
balance between type-1and type-2 errors is being adopted by the banks in
this process.
The Government of India, as a public policy leader and plan developer,
should evaluate the chinks in its armour that have to lead to mishaps such
as these. Furthermore it is necessary that the Ministry of Corporate affairs
(MCA) take time to carefully review various factors like the disclosure
standards of corporates, including banks. However, rather than merely
making increases in the number of compliances, the MCA must also carry
out a wider review of the disclosure and compliance process, to ensure that
the process is as effective and error-free as possible.
