RBI special inspection of bank LoUs post $2bn PNB fraud
The RBI is conducting a special inspection of Letters of Undertaking issued by state-run banks after jeweller Nirav Modi defrauded PNB of $2 billion. RBI is also reportedly reviewing the working of SWIFT messaging system which is linked to the PNB fraud. India's largest lender SBI has been exempted from the inspection as its software system is integrated with SWIFT.