The RBI will be ready to inject adequate amount
of extra cash into banks if needed ahead of
March‐end to give flexibility to lenders to manage
their liquidity mismatches that typically happen
at quarter‐end, it said in a release today. RBI said
it "stands ready" to provide additional cash
"using a combination of appropriate instruments"
without giving any further details on specific
steps, to address any extra demand for liquidity
due to advance tax payments and increase in
withdrawal of cash from banks towards March‐end.
The finance ministry today said the assets in
the Nirav Modi fraud case involving Punjab
National Bank will be recovered and nobody will
The IBA has vaulted into the centre stage to
ensure that other banks are ring‐fenced from the
fallout of the Punjab National Bank crisis, which
threatens to draw into its web those financiers
that had offered buyers’ credit to a top jeweller
embroiled in the $1.8‐billion controversy. “We are
examining the case to figure out what the
mistakes were. We will look at the banks
impacted, how to plug the gaps in the system and
what procedures require changes. We will meet
soon to take stock of the situation,” said V G
Kannan, CEO of the bankers’ lobby group.
The RBI has directed Punjab Nayional Bank to pay
the entire Rs 11,300 crore owed to counterparty
banks in the alleged fraud involving jeweller Nirav
Modi, said bankers aware of the development.
Not doing so could lead to turmoil in the financial
markets as the trust factor that’s integral to the
funcotining of the banking industry will be lost,
they said. PNB, which is short of funds, has in
turn sought the intervention of the government
to sort out the mess, they added.
Punjab National Bank has cautioned other banks
about the modus operandi of the scam. "It has
been reported through a preliminary invesgation
that the suspected fraud has been
carried out by the perpetrators in collusion with
the staff of one of the our branches in Mumbai,"
PNB said in a letter sent to various banks. The
letter said it was found through the SWIFT trail
that one junior level official fraudulently, and
without authorisation, issued Letters of
Undertaking (LoUs) on behalf of some companies
belonging to Nirav Modi Group.
The Enforcement Directorate today conducted
multiple searches in connection with a Rs 280
crore money laundering case against billionaire
jewellery designer Nirav Modi and others
following a complaint by Punjab Naotinal Bank.
Official sources said the agency sleuths swooped
down on at least 10 premises of entities involved
in the case early morning. The ED had filed a case
under the Prevention of Money Laundering Act
(PMLA) after going through a CBI FIR registered
early this month. It is understood that the ED also
went through the PNB complaint that was made
out against Modi and others.
Punjab Naotinal Bank has demanded a concrete
repayment action plan from Nirav Modi, the
prime accused in the Rs 11,300‐crore 'Letter of
Undertaking' scam, a top bank official said.
"Nirav Modi had last week sent us an email offering to
repay the dues. We have asked him to come in
person and we have not accepted the vague
offers made by him. We have asked for a concrete
repayment plan" , Sunil Mehta, MD & CEO, PNB told.
Billionaire jewellery designer Nirav Modihad left
the country on January 1 much before the CBI
received a complaint from Punjab National Bank
on January 29 about a Rs 280‐crore fraud, officials
said. His brother Nishal, a Belgian citizen,also left
the country on January 1, while wife Ami, a US
citizen, and business partner Mehul Choksi, the
Indian promoter of Gitanjali jewellery chain,
departed on January 6, the officials said. The
agency issued a look out circular against all the
four after registering the first FIR against them,
Axis Bank today said it ‘sold down all the buyers'
credit transactions’ undertaken by its Hong Kong
branch with Punjab National Bank. The bank notified
the stock exchanges in this regard in the
wake of PNB disclosing that fraudulent and
The Government will change the base year to
2017‐18 for the calculaon
of GDP and IIP numbers while for retail inflaon
the year will be revised to 2018, Union minister D
V Sadananda Gowda said today.
Wholesale infltiaon eased to a 6 month low in
January as food articles including fruits and
vegetables as well as fuel became cheaper. Data
released released today showed that wholesale
price index based infltiaon stood at 2.84% in
January as against 3.58% in December. It was
4.26% in January 2017.
All‐out war broke out on Twitter after Paytm
Founder Vijay Shekhar Sharma accused popular
messaging platform WhatsApp of “killing” the
open UPI (Unified Payments Interface) system by
launching a payment feature.
Rating agency Crisil has launched 11 new debt
indices and also announced a change in
nomenclature of an existing index in line with
the new norms issued by the SEBI for
classification of mutual funds.
The Authority of Advance Rulings (AAR) has held
that the salary income of a NRI for services
rendered overseas cannot be taxed in India, even
when such salary is paid into a bank account in
India. The ruling stands out because apart from
providing relief from double taxation under
the Indo‐US tax treaty, the AAR additionally held
that the sums received in India would not be
taxable here under the domestic tax laws.
West Bengal Chief Minister Mamata
Banerjee today said she shot off another letter to
the Central Government asking it to withdraw the
controversial FRDI Bill.
Under attack from the opposition over the
Rs11,400 crore PNB fraud allegedly involving
billionaire jeweller Nirav Modi, the the major
ruling party today said no one involved in the
scam would be spared. Union minister Ravi
Shankar Prasad clarified that Nirav Modi was not
part of the delegaon to Davos led by PM Modi
and had reached there on his own.
Stung by a massive Rs 11,400 crore fraud, Punjab
National Bank has lost over Rs 8,000 crore of
market valuaon in two days ‐‐ an amount
equivalent to over six‐times its full‐year profit.
PNB today extended its fall for the second
straight session and ended the day 12% lower at
Rs 128.35 on BSE. The stock had fallen 10% on