According to the Reserve Bank of India guidelines, quarterly and annual internal audits have to be carried out by banks which is followed by external audits. We are surprised to see that all these have been violated in the Nirav Modi case. We are therefore meeting IBA this week to put forward our point of view,” said Collin Shah, vice-chairman, Gem & Jewellery Export Promotion Council (GJEPC).SWIFT messages go through three layers – make, checker and verifier. “In the Nirav Modi case all three layers have been violated. Although the alleged fraud committed by diamond merchant Nirav Modi on Punjab National Bank is an operational risk for banks, the series of defaults by promoters in the jewellery sector calls the underwriting skills of banks into question.
Source: Economic Times March 13, 2018 01:52 UTC