RBI

RBI’s statement on fraud in PNB-No instruction given to PNB to meet its commitments under LOU to other banks

RBI’s statement on fraud in PNB-No instruction given to PNB to meet its commitments under the Letter of Undertaking (LOU) to other banks.

Reserve Bank of India (RBI), in a statement issued yesterday has denied having directed PNB to meet its commitments under the Letter of Undertaking (LOU) to other banks. RBI categorically RBI denied having given any such instructions.

RBI has rebutted the reports in the media that in the wake of fraud involving a sum of USD 1.77 billion in Punjab National Bank (PNB), the Reserve Bank of India (RBI) has directed PNB to meet its commitments under the Letter of Undertaking (LOU) to other banks. 

The RBI clarified that the fraud in PNB is a case of operational risk arising on account of delinquent behaviour by one or more employees of the bank and failure of internal controls. RBI has already undertaken a supervisory assessment of control systems in PNB and will take appropriate supervisory action.

Share

Recent Posts

  • Income Tax

CBDT extends due date of tax audit for FY 2025-26 to 21st October 2026

CBDT has extended the due date for furnishing Return of Income for Assessment Year 2026-27 (FY 2025-26) in respect of…

17 hours ago
  • Income Tax

Denying accumulation of u/s 11(2) merely on grounds of delay in filing Form No. 10 is unsustainable

Denying the accumulation of u/s 11(2) merely on grounds of a procedural delay in filing Form No. 10 is unsustainable…

3 days ago
  • Empanelment

Engagement of 05 Young Professionals CAs at Central Registrar of Cooperative Society

Engagement of 05 Young Professionals CAs in the Office of Central Registrar of Cooperative Society on contractual basis The office…

3 days ago
  • Income Tax

AO can’t take two different stands on immunity u/s 270AA(2) for a same transaction

Immunity u/s 270AA(2) in respect of a single transaction can not be denied to one assessee when the penalty was…

4 days ago
  • Income Tax

ITAT held 2000 gram jewellery reasonable in view of customary practices & CBDT Instruction

ITAT deleted addition u/s 69A towards jewellery found in search in view of Indian traditions, CBDT Instruction and High Court…

5 days ago
  • Income Tax

Documents obtained post search & information obtained from public domain not incriminating material

Documents obtained post search and information obtained from the public domain not incriminating material. Documents obtained by AO post search…

6 days ago