Wake up call for Scam Free India – Punjab National Bank (PNB) Rs.11,400 crore Scam
Scam happened at PNB’s mid corporate branch at Brady House, Mumbai. The fraud was being continuously perpetuated for a period of 7 years without being detected from the year 2011 till January 2018. The main instruments of fraud were LOUs (Letter of Undertakings) and FLCs (Foreign Letter of Credits). LOU is being termed as Letter of Understanding or Letter of Undertaking by various sources reporting this scam – even here for such important financial document, the financial pundit does not want to stick to one specific terminology! Even LC is termed as Letter of Comfort and Letter of Credit, but, term - Letter of Credit is popular. This scam is not a single banking transaction confined to one Branch though originated from one Branch – but, many financial documents, many transactions, many foreign banks – at different periods spread over 7 long years at present mainly two foreign Indian Branches viz. Allahabad Bank at Hong Kong (Main chosen Indian Bank to avail foreign