PNB fraud swells to well above $2 bn; RBI bans LoUs: Top 10 developments

In a major decision, RBI on Tuesday banned banks from issuing Letters of Undertaking (LoUs)

Fugitive jeweller Nirav Modi obtained his first fraudulent guarantee from PNB's Brady House branch in Mumbai on March 10, 2011 and managed to get 1,212 more such guarantees over the next 74 months, Finance Minister Arun Jaitley said on Tuesday. Companies linked to Nirav Modi obtained Letters of Undertaking (LoUs), which were used to get loans from overseas branches of Indian banks, up to five guarantees on a single day, with the help of rouge employees of the country's second biggest state-run bank. In a written reply to a question in the Rajya Sabha, Jaitley said the last fraudulent LoU