Banking Frauds: In Relation to PNB Scam

Abstract

This paper talks about letter of undertaking and banking fraud with reference to PNB Nirav Modi scam. This paper focuses on the enterprise letter, i.e. the meaning, issuance procedure, the need for the present company letter status and the difference between the business letter and the credit letter. The letter is a payment assurance under which a lender allows the borrower to collect capital from the financial office of another Indian bank in the form of a short-term credit. Many Indian banks are more inclined towards loans and earnings in the current competitive banking scenario that lead to ignorance by Indian Banks of their banking standards. For Nirav Modi, in India's second largest bank, PNB, the bank's officials in connivance with diamond and jewelry traders Nirav Modi took advantage of information lacunes and lax processes to defraud money that may amount to RS.11345 crore. The scope of the loan is claimed to stretch beyond what is stipulated in the laws of law, which contributed to such a great attack, in the Nirav Modi-Mehil Choksi case. This article also deals with bank fraud in relation to PNB Nirav Modi scams. Bank fraud is the use of possibly illegal ways to collect cash and property or by acting fraudulently as a bank or any other financial entity to receive capital from depositors, operated or controlled by a financial institution. Bank theft is a serious act in many cases. Although the particular elements of banking legislation vary according to jurisdiction.