Pnb Scam
#Bigbankscam #PNBScam has raised question on credibility of Indian banking and regulator RBI.
The modus operandi so far revealed shows that this may be a bigger conspiracy than just two lower level officers in PNB. They might have been lured into it and have become party to this conspiracy. And PNB became a victim.
Because, if the LOUs are used for crediting PNB Nostro account means it is import financing. So All these banks which are of Indian origin operating outside must know that as per FEMA buyers credit can be only up to the operating cycle and for Gold and precious stones it is 90 days. Then how they accepted roll over above 90 days. And continue to do it. Further it is surprising that Axis bank claims it has sold its portfolio. I don't think there is provision for selling the portfolio along with the right in LOU.
So all other banks which accepted fresh LOU or rollover have violated the banking rules of the country of origin. RBI has failed to monitor it. Further do not seem to have looked at the issue from this angle and initiated action. Now the Banking authorities in these foreign country too can initiate probe as the banks have violated the banking laws of country of origin. And have used their territory to violate it.
Further as per American Law they also can initiate probe as the currency used is USD and nostro account of American banks are used. CBI and investigating agencies should initiate action against all those bankers who are involved.
Hope every authority at every country will initiate action so that such conspiracy is not repeated. more
The modus operandi so far revealed shows that this may be a bigger conspiracy than just two lower level officers in PNB. They might have been lured into it and have become party to this conspiracy. And PNB became a victim.
Because, if the LOUs are used for crediting PNB Nostro account means it is import financing. So All these banks which are of Indian origin operating outside must know that as per FEMA buyers credit can be only up to the operating cycle and for Gold and precious stones it is 90 days. Then how they accepted roll over above 90 days. And continue to do it. Further it is surprising that Axis bank claims it has sold its portfolio. I don't think there is provision for selling the portfolio along with the right in LOU.
So all other banks which accepted fresh LOU or rollover have violated the banking rules of the country of origin. RBI has failed to monitor it. Further do not seem to have looked at the issue from this angle and initiated action. Now the Banking authorities in these foreign country too can initiate probe as the banks have violated the banking laws of country of origin. And have used their territory to violate it.
Further as per American Law they also can initiate probe as the currency used is USD and nostro account of American banks are used. CBI and investigating agencies should initiate action against all those bankers who are involved.
Hope every authority at every country will initiate action so that such conspiracy is not repeated. more
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