Punjab National Bank (PNB) has the size and capability to handle payments arising from fake LoUs given out to Nirav Modi and Mehul Choksi, says CEO Sunil Mehta. Jewellers Nirav Modi and Mehul Choksi are alleged to have raised credit overseas on letters of undertaking (LoUs) fraudulently secured from PNB. Wherever there was a loophole in the system, we have started plugging them because earlier the SWIFT system did not have any connectivity with CBS (core banking system). This fraud (Nirav Modi) was on an operational level and the magnitude was bigger; so it was highlighted more. PNB has issued as many as 1,590 LoUs to Nirav Modi and Mehul Choksi’s groups.

Source: Mint April 13, 2018 02:48 UTC