Rs 129-billion scam fallout: RBI to resolve impasse over PNB liabilities

Finance ministry officials said the central government was not authorised to examine loan accounts above Rs 50 million and hence could not resolve the disputes among banks

The Reserve Bank of India (RBI) is likely to hold a meeting with the banks affected by the Rs 129-billion scam reported by Punjab National Bank (PNB) to end the stalemate over liabilities related to fraudulent letters of undertaking (LoUs) issued in favour of the Nirav Modi and Mehul Choksi groups of companies.
 
“The RBI is expected to call a meeting soon to resolve the issue between the banks,” a source said, requesting anonymity.
 
The due date of payment by PNB for LoUs worth half the scam amount, around Rs 60 billion, falls before March 31 this year.