RBI starts special audit of state-run banks post PNB fraud
The RBI has reportedly initiated a special audit of state-owned banks focussing on the issuance of Letters of Undertakings (LoUs). This comes after firms linked to Nirav Modi and Mehul Choksi raised overseas credit via fraudulent LoUs issued by PNB. The RBI has asked for details of the LoUs and whether banks kept enough cash on margin before issuing them.