Thursday, February 15, 2018

PNB detects Rs 11,500 crore fraud: All you need to know

NEW DELHI: Punjab National Bank (PNB), the country's second-largest lender on Wednesday said that it has detected "fraudulent and unauthorised" transactions+ worth more than Rs 11,500 crore at one of its branches in Mumbai. Here is your cheatsheet on this latest banking fraud:

WHO CARRIED OUT THE FRAUD?

PNB has not revealed the names or other details of those involved in the scam. However, in a filing to the bourses the bank has said the transactions were "for the benefit of a few select account holders with their apparent connivance" and that "based on these transactions other banks appear to have advanced money to these customers abroad."


WHAT ACTION HAS PNB TAKEN?

In the stock exchange filing, PNB said that it has reported the fraud to law enforcement and investigative agencies.

IS THERE A BACKGROUND TO THE FRAUD?

Even though there is not much clarity on what lead to the scam, PNB has been grappling with fraud cases recently. Just last week, an investigation was launched over accusations that billionaire jeweller Nirav Modi -- one of the country's richest men -- defrauded PNB of Rs 282 crore. However, it could not be immediately ascertained if the two fraud cases have a link.

IS THERE A LARGER IMPACT?


An immediate fallout can be tracked to the equity markets where the PNB stock tanked 8 per cent during intra-day trading on Wednesday. The Nifty PSU Bank sub-index felt the pressure too, as it was trading almost 3 per cent below previous closing mark.



The bank, in its filing has not elaborated on what impact the fraud may have on its finances and it didn’t name the other lenders which could be hurt.



The case comes in the backdrop of state-run banks already reeling under massive bad loans which run into lakhs of crores of rupees. Most PSU banks have performed poorly in the third quarter (October-December) as a result of this.


Source:-The Times of India
(With inputs from agencies)

https://timesofindia.indiatimes.com/business/india-business/pnb-detects-rs-11500-crore-fraud-all-you-need-to-know/articleshow/62913439.cms

Non implementation of CAT Orders : Lok Sabha Unstarred Question

Payment of Incentive to Sales Force of PLI / RPLI


Various circular issued from Central Vigilance Commission

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Core System Interrogator (CSI) Working Procedure

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HBA Interest Rate Concession for Small Family Norms Withdrawn

Press Information Bureau
Government of India
Ministry of Housing & Urban Affairs

09-November-2017 18:33 IST
House Building Advance 2017

The Government has revised the House Building Advance (HBA) rules for Central Government Employees incorporating the accepted recommendations of the 7th Pay Commission.  Following are the salient features of the new rules:-

1.         The total amount of advance that a central government employee can borrow from government has been revised upwards.  The employee can up to borrow 34 months of the basic pay subject to a maximum of Rs. 25 lakhs (Rs. Twenty Five Lakhs only), or cost of the house/flat, or the amount according to repaying capacity, whichever is the least for new construction/purchase of new house/flat.  Earlier this limit was only Rs.7.50 lakhs.

2.         Similarly, the HBA amount for expansion of the house has been revised to a maximum of Rs.10 lakhs or 34 months of basic pay or cost of the expansion of the house or amount according to repaying capacity, whichever is least. This amount was earlier Rs.1.80 lakhs. 

3.      The cost ceiling limit of the house which an employee can construct/ purchase has beenrevised to Rs.1.00 crore with a proviso of upward revision of 25% in deserving cases. The earlier cost ceiling limit was Rs.30 lakhs.

4.      Both spouses, if they are central government employees, are now eligible to take HBA either jointly, or separately.  Earlier only one spouse was eligible for House Building Advance.

5.      There is a provision for individuals migrating from home loans taken from Financial Institutions/ Banks to HBA, if they so desire.

6.      The provision for availing ‘second charge’ on the house for taking loans to fund balance amount from Banks/ Financial Institutions has been simplified considerably. ‘No Objection Certificate’ will be issued along with sanction order of HBA, on employee’s declaration.

7.      Henceforth, the rate of Interest on Housing Building Advance shall be at only one rate of 8.50% at simple interest (in place of the earlier four slabs of  bearing interest rates ranging from 6% to 9.50% for different slabs of HBA which ranged from Rs.50,000/- to Rs.7,50,000/-) .

8.       This rate of interest shall be reviewed every three years.  All cases of subsequent tranches/ installments of HBA being taken by the employee in different financial years shall be governed by the applicable rate of interest in the year in which the HBA was sanctioned, in the event of change in the rate of interest.  HBA is admissible to an employee only once in a life time.

9.      The clause of adding a higher rate of interest at 2.5% (two point five percent) above the prescribed rate during sanction of House Building Advance stands withdrawn. Earlier the employee was sanctioned an advance at an interest rate of 2.5%  above the scheduled rates with the stipulation that if conditions attached to the sanction including those relating to the recovery of amount are fulfilled completely,  to the satisfaction of the competent authority, a rebate of interest to the extent of 2.5% was allowed.

10.  The methodology of recovery of HBA shall continue as per the existing pattern recovery of principal first in the first fifteen years in 180 monthly installments and interest thereafter in next five years in 60 monthly installments.

11.   The house/flat constructed/purchased with the help of House Building advance can be insured with the private insurance companies which are approved by Insurance Regulatory Development Authority (IRDA). 

12.       This attractive package is expected to incentivize the government employee to buy house/ flat by taking the revised HBA along with other bank loans, if required.  This will give a fillip to the Housing infrastructure sector.

***
 RJ/Chanda/

Central Civil Services (Leave Travel Concession) Rules, 1988 - Fulfillment of procedural requirements - Clarification : Department of Posts.