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Prof. Tariq Mansoor is presently serving as the Vice-Chancellor, Aligarh Muslim University, Aligarh. Previously he has also served as Principal, J.N. Medical College, Chief Medical Superintendent, J.N. Medical College Hospital and Chairman, Department of Surgery. He is also the member of Medical Council of India since March 2015 for a period of four years. He is product of the first batch of prestigious Our Lady of Fatima Higher Secondary School, Aligarh. During his school days he has served as House Captain as well as School Captain. He did his MBBS and MS in General Surgery from Jawaharlal Nehru Medical College, AMU, Aligarh. A surgeon by profession with special interest in Breast and Thyroid Diseases, Prof. Tariq Mansoor has 33 years of Teaching and 35 years of Clinical experience. He has 90 publications to his credit and has guided 49 Postgraduate Medical Students for their Thesis as Supervisor / Co-Supervisor

RBI bars banks from issuing LoUs in Nirav scam fallout

RBI bars banks from issuing LoUs in Nirav scam fallout

Mumbai: The Reserve Bank of India on Tuesday barred banks from issuing guarantees in the form of letters of undertaking (LoU).

The move comes weeks after fugitive jeweller Nirav Modi and his uncle Mehul Choksi allegedly committed India’s biggest bank fraud.

The RBI also banned with immediate effect issuance of letters of comfort which, like LoUs, are used by importers to fund their overseas purchases.

However, letters of credit and bank guarantees will continue upon meeting certain conditions, the central bank said in a press statement.

Companies belonging to Modi and Choksi allegedly colluded with employees of Punjab National Bank’s Brady House branch in Mumbai to obtain fraudulent LoUs, without providing any margin money as security. They did not have any pre-approved credit limit either. These firms raised short-term credit from overseas branches of other Indian banks based on these LoUs. The fraud which began in March 2011, is now estimated to have crossed $2 billion (about Rs 13,000 crore).

“On a review of the extant guidelines, it has been decided to discontinue the practice of issuance of LoUs/ LoCs for trade credits for imports into India” by commercial banks with immediate effect, RBI said. “Letters of Credit and bank guarantees for trade credits for imports into India may continue to be issued subject to compliance with (certain) provisions.”

As a trade financing measure, overseas banks usually lend to importers based on the LoUs issued by the importers’ bank. The money thus raised is used to make payment to offshore suppliers in foreign currency. The change in regulations may hit import dependent businesses.

Earlier in the day, Finance Minister Arun Jaitley in a written reply to a question in Rajya Sabha said that Nirav Modi obtained his first fraudulent guarantee from PNB’s Brady House branch in Mumbai on March 10, 2011 and managed to get 1,212 more such guarantees over the next 74 months.

PTI

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from The Siasat Daily

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