Deprecated (16384): The ArrayAccess methods will be removed in 4.0.0.Use getParam(), getData() and getQuery() instead. - /home/brlfuser/public_html/src/Controller/ArtileDetailController.php, line: 73
 You can disable deprecation warnings by setting `Error.errorLevel` to `E_ALL & ~E_USER_DEPRECATED` in your config/app.php. [CORE/src/Core/functions.php, line 311]
Code Context


        trigger_error($message, E_USER_DEPRECATED);

    }
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 You can disable deprecation warnings by setting `Error.errorLevel` to `E_ALL & ~E_USER_DEPRECATED` in your config/app.php.'
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deprecationWarning - CORE/src/Core/functions.php, line 311
Cake\Http\ServerRequest::offsetGet() - CORE/src/Http/ServerRequest.php, line 2421
App\Controller\ArtileDetailController::printArticle() - APP/Controller/ArtileDetailController.php, line 73
Cake\Controller\Controller::invokeAction() - CORE/src/Controller/Controller.php, line 610
Cake\Http\ActionDispatcher::_invoke() - CORE/src/Http/ActionDispatcher.php, line 120
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Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
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Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Error\Middleware\ErrorHandlerMiddleware::__invoke() - CORE/src/Error/Middleware/ErrorHandlerMiddleware.php, line 96
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Http\Runner::run() - CORE/src/Http/Runner.php, line 51
Cake\Http\Server::run() - CORE/src/Http/Server.php, line 98

Deprecated (16384): The ArrayAccess methods will be removed in 4.0.0.Use getParam(), getData() and getQuery() instead. - /home/brlfuser/public_html/src/Controller/ArtileDetailController.php, line: 74
 You can disable deprecation warnings by setting `Error.errorLevel` to `E_ALL & ~E_USER_DEPRECATED` in your config/app.php. [CORE/src/Core/functions.php, line 311]
Code Context


        trigger_error($message, E_USER_DEPRECATED);

    }
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 You can disable deprecation warnings by setting `Error.errorLevel` to `E_ALL & ~E_USER_DEPRECATED` in your config/app.php.'
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deprecationWarning - CORE/src/Core/functions.php, line 311
Cake\Http\ServerRequest::offsetGet() - CORE/src/Http/ServerRequest.php, line 2421
App\Controller\ArtileDetailController::printArticle() - APP/Controller/ArtileDetailController.php, line 74
Cake\Controller\Controller::invokeAction() - CORE/src/Controller/Controller.php, line 610
Cake\Http\ActionDispatcher::_invoke() - CORE/src/Http/ActionDispatcher.php, line 120
Cake\Http\ActionDispatcher::dispatch() - CORE/src/Http/ActionDispatcher.php, line 94
Cake\Http\BaseApplication::__invoke() - CORE/src/Http/BaseApplication.php, line 235
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Routing\Middleware\RoutingMiddleware::__invoke() - CORE/src/Routing/Middleware/RoutingMiddleware.php, line 162
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Routing\Middleware\AssetMiddleware::__invoke() - CORE/src/Routing/Middleware/AssetMiddleware.php, line 88
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Error\Middleware\ErrorHandlerMiddleware::__invoke() - CORE/src/Error/Middleware/ErrorHandlerMiddleware.php, line 96
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Http\Runner::run() - CORE/src/Http/Runner.php, line 51
Cake\Http\Server::run() - CORE/src/Http/Server.php, line 98

Warning (512): Unable to emit headers. Headers sent in file=/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Error/Debugger.php line=853 [CORE/src/Http/ResponseEmitter.php, line 48]
Code Context
            if (Configure::read('debug')) {

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-The Hindu&lt;br /&gt;
&lt;br /&gt;
&lt;em&gt;We need stricter adherence to sound banking rules and more transparency from public and private players&lt;br /&gt;
&lt;/em&gt;&lt;br /&gt;
The bank frauds involving Punjab National Bank (PNB) and the companies associated with businessmen Nirav Modi and Mehul Choksi as well as the Rotomac case couldn&amp;rsquo;t have come at a worse time. The Indian banking system is already reeling under the pressure of growing NPAs, or non-performing assets (less politely known as loans that are not going to be repaid), which will touch nearly ?10 lakh crore by March this year. This does not include the ?6 lakh crore already written-off. This has already caused a slowdown in disbursal of bank credit, in turn affecting productive investment.&lt;br /&gt;
&lt;br /&gt;
&lt;em&gt;Failure at many levels&lt;br /&gt;
&lt;/em&gt;&lt;br /&gt;
What has been revealed so far could be only the tip of the iceberg. The sheer ease with which fraudulent practices have been carried out and the length of time over which they continued suggest that the rot is much deeper. Other banks could have provided large loans without due diligence, which other companies then received without intent to repay; this means that many more loans gone bad could soon surface.&lt;br /&gt;
&lt;br /&gt;
These revelations cannot bode well for the ruling party or for a Prime Minister who had promised to be the nation&amp;rsquo;s &amp;ldquo;chowkidar&amp;rdquo; to prevent any such loot. But let us step away from the politics. It is now clear that the scams are fundamentally and overwhelmingly a failure of regulation.&lt;br /&gt;
&lt;br /&gt;
This failure has occurred at many levels. At the level of the bank, it is impossible to believe that only a handful of employees (the current fall guys) have been implicated. Senior management and auditors did not track these problematic transactions for years. The Reserve Bank of India (RBI) did not monitor banks properly and created opacity with new financial instruments. The Finance Ministry failed in its oversight and regulation. And successive Central governments, including the present one, did and have not done anything to address the obvious problems that were festering, and made them even worse.&lt;br /&gt;
&lt;br /&gt;
&lt;em&gt;Using LoUs&lt;br /&gt;
&lt;/em&gt;&lt;br /&gt;
The PNB scam relied on the existence of an unusual financial instrument, the letter of undertaking (LoU). This is a bank guarantee that enables a bank&amp;rsquo;s customer to raise short-term credit from another Indian bank&amp;rsquo;s foreign branch. It has to be another Indian bank, because the LoU as a form of underwriting other borrowing does not exist in other countries and is not even recognised by foreign banks. It was created by the RBI as an additional incentive to importers who could then avail of cheaper credit abroad, even though import credits already exist.&lt;br /&gt;
&lt;br /&gt;
Please &lt;a href=&quot;http://www.thehindu.com/opinion/lead/can-banking-recover/article22852646.ece?homepage=true&quot;&gt;click here&lt;/a&gt; to read more. &lt;br /&gt;
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We need stricter adherence to sound banking rules and more transparency from public and private players

The bank frauds involving Punjab National Bank (PNB) and the companies associated with businessmen Nirav Modi and Mehul Choksi as well as the Rotomac...&#039;,
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&lt;br /&gt;
&lt;em&gt;We need stricter adherence to sound banking rules and more transparency from public and private players&lt;br /&gt;
&lt;/em&gt;&lt;br /&gt;
The bank frauds involving Punjab National Bank (PNB) and the companies associated with businessmen Nirav Modi and Mehul Choksi as well as the Rotomac case couldn&amp;rsquo;t have come at a worse time. The Indian banking system is already reeling under the pressure of growing NPAs, or non-performing assets (less politely known as loans that are not going to be repaid), which will touch nearly ?10 lakh crore by March this year. This does not include the ?6 lakh crore already written-off. This has already caused a slowdown in disbursal of bank credit, in turn affecting productive investment.&lt;br /&gt;
&lt;br /&gt;
&lt;em&gt;Failure at many levels&lt;br /&gt;
&lt;/em&gt;&lt;br /&gt;
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&lt;br /&gt;
These revelations cannot bode well for the ruling party or for a Prime Minister who had promised to be the nation&amp;rsquo;s &amp;ldquo;chowkidar&amp;rdquo; to prevent any such loot. But let us step away from the politics. It is now clear that the scams are fundamentally and overwhelmingly a failure of regulation.&lt;br /&gt;
&lt;br /&gt;
This failure has occurred at many levels. At the level of the bank, it is impossible to believe that only a handful of employees (the current fall guys) have been implicated. Senior management and auditors did not track these problematic transactions for years. The Reserve Bank of India (RBI) did not monitor banks properly and created opacity with new financial instruments. The Finance Ministry failed in its oversight and regulation. And successive Central governments, including the present one, did and have not done anything to address the obvious problems that were festering, and made them even worse.&lt;br /&gt;
&lt;br /&gt;
&lt;em&gt;Using LoUs&lt;br /&gt;
&lt;/em&gt;&lt;br /&gt;
The PNB scam relied on the existence of an unusual financial instrument, the letter of undertaking (LoU). This is a bank guarantee that enables a bank&amp;rsquo;s customer to raise short-term credit from another Indian bank&amp;rsquo;s foreign branch. It has to be another Indian bank, because the LoU as a form of underwriting other borrowing does not exist in other countries and is not even recognised by foreign banks. It was created by the RBI as an additional incentive to importers who could then avail of cheaper credit abroad, even though import credits already exist.&lt;br /&gt;
&lt;br /&gt;
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We need stricter adherence to sound banking rules and more transparency from public and private players

The bank frauds involving Punjab National Bank (PNB) and the companies associated with businessmen Nirav Modi and Mehul Choksi as well as the Rotomac...&#039;
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-The Hindu

We need stricter adherence to sound banking rules and more transparency from public and private players

The bank frauds involving Punjab National Bank (PNB) and the companies associated with businessmen Nirav Modi and Mehul Choksi as well as the Rotomac..."/>
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                <strong>Can banking recover? -Jayati Ghosh</strong></h1>
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                <div align="justify">-The Hindu<br /><br /><em>We need stricter adherence to sound banking rules and more transparency from public and private players<br /></em><br />The bank frauds involving Punjab National Bank (PNB) and the companies associated with businessmen Nirav Modi and Mehul Choksi as well as the Rotomac case couldn&rsquo;t have come at a worse time. The Indian banking system is already reeling under the pressure of growing NPAs, or non-performing assets (less politely known as loans that are not going to be repaid), which will touch nearly ?10 lakh crore by March this year. This does not include the ?6 lakh crore already written-off. This has already caused a slowdown in disbursal of bank credit, in turn affecting productive investment.<br /><br /><em>Failure at many levels<br /></em><br />What has been revealed so far could be only the tip of the iceberg. The sheer ease with which fraudulent practices have been carried out and the length of time over which they continued suggest that the rot is much deeper. Other banks could have provided large loans without due diligence, which other companies then received without intent to repay; this means that many more loans gone bad could soon surface.<br /><br />These revelations cannot bode well for the ruling party or for a Prime Minister who had promised to be the nation&rsquo;s &ldquo;chowkidar&rdquo; to prevent any such loot. But let us step away from the politics. It is now clear that the scams are fundamentally and overwhelmingly a failure of regulation.<br /><br />This failure has occurred at many levels. At the level of the bank, it is impossible to believe that only a handful of employees (the current fall guys) have been implicated. Senior management and auditors did not track these problematic transactions for years. The Reserve Bank of India (RBI) did not monitor banks properly and created opacity with new financial instruments. The Finance Ministry failed in its oversight and regulation. And successive Central governments, including the present one, did and have not done anything to address the obvious problems that were festering, and made them even worse.<br /><br /><em>Using LoUs<br /></em><br />The PNB scam relied on the existence of an unusual financial instrument, the letter of undertaking (LoU). This is a bank guarantee that enables a bank&rsquo;s customer to raise short-term credit from another Indian bank&rsquo;s foreign branch. It has to be another Indian bank, because the LoU as a form of underwriting other borrowing does not exist in other countries and is not even recognised by foreign banks. It was created by the RBI as an additional incentive to importers who could then avail of cheaper credit abroad, even though import credits already exist.<br /><br />Please <a href="http://www.thehindu.com/opinion/lead/can-banking-recover/article22852646.ece?homepage=true" title="http://www.thehindu.com/opinion/lead/can-banking-recover/article22852646.ece?homepage=true">click here</a> to read more. <br /></div>               </font>
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-The Hindu&lt;br /&gt;
&lt;br /&gt;
&lt;em&gt;We need stricter adherence to sound banking rules and more transparency from public and private players&lt;br /&gt;
&lt;/em&gt;&lt;br /&gt;
The bank frauds involving Punjab National Bank (PNB) and the companies associated with businessmen Nirav Modi and Mehul Choksi as well as the Rotomac case couldn&amp;rsquo;t have come at a worse time. The Indian banking system is already reeling under the pressure of growing NPAs, or non-performing assets (less politely known as loans that are not going to be repaid), which will touch nearly ?10 lakh crore by March this year. This does not include the ?6 lakh crore already written-off. This has already caused a slowdown in disbursal of bank credit, in turn affecting productive investment.&lt;br /&gt;
&lt;br /&gt;
&lt;em&gt;Failure at many levels&lt;br /&gt;
&lt;/em&gt;&lt;br /&gt;
What has been revealed so far could be only the tip of the iceberg. The sheer ease with which fraudulent practices have been carried out and the length of time over which they continued suggest that the rot is much deeper. Other banks could have provided large loans without due diligence, which other companies then received without intent to repay; this means that many more loans gone bad could soon surface.&lt;br /&gt;
&lt;br /&gt;
These revelations cannot bode well for the ruling party or for a Prime Minister who had promised to be the nation&amp;rsquo;s &amp;ldquo;chowkidar&amp;rdquo; to prevent any such loot. But let us step away from the politics. It is now clear that the scams are fundamentally and overwhelmingly a failure of regulation.&lt;br /&gt;
&lt;br /&gt;
This failure has occurred at many levels. At the level of the bank, it is impossible to believe that only a handful of employees (the current fall guys) have been implicated. Senior management and auditors did not track these problematic transactions for years. The Reserve Bank of India (RBI) did not monitor banks properly and created opacity with new financial instruments. The Finance Ministry failed in its oversight and regulation. And successive Central governments, including the present one, did and have not done anything to address the obvious problems that were festering, and made them even worse.&lt;br /&gt;
&lt;br /&gt;
&lt;em&gt;Using LoUs&lt;br /&gt;
&lt;/em&gt;&lt;br /&gt;
The PNB scam relied on the existence of an unusual financial instrument, the letter of undertaking (LoU). This is a bank guarantee that enables a bank&amp;rsquo;s customer to raise short-term credit from another Indian bank&amp;rsquo;s foreign branch. It has to be another Indian bank, because the LoU as a form of underwriting other borrowing does not exist in other countries and is not even recognised by foreign banks. It was created by the RBI as an additional incentive to importers who could then avail of cheaper credit abroad, even though import credits already exist.&lt;br /&gt;
&lt;br /&gt;
Please &lt;a href=&quot;http://www.thehindu.com/opinion/lead/can-banking-recover/article22852646.ece?homepage=true&quot;&gt;click here&lt;/a&gt; to read more. &lt;br /&gt;
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We need stricter adherence to sound banking rules and more transparency from public and private players

The bank frauds involving Punjab National Bank (PNB) and the companies associated with businessmen Nirav Modi and Mehul Choksi as well as the Rotomac...&#039;,
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&lt;br /&gt;
&lt;em&gt;We need stricter adherence to sound banking rules and more transparency from public and private players&lt;br /&gt;
&lt;/em&gt;&lt;br /&gt;
The bank frauds involving Punjab National Bank (PNB) and the companies associated with businessmen Nirav Modi and Mehul Choksi as well as the Rotomac case couldn&amp;rsquo;t have come at a worse time. The Indian banking system is already reeling under the pressure of growing NPAs, or non-performing assets (less politely known as loans that are not going to be repaid), which will touch nearly ?10 lakh crore by March this year. This does not include the ?6 lakh crore already written-off. This has already caused a slowdown in disbursal of bank credit, in turn affecting productive investment.&lt;br /&gt;
&lt;br /&gt;
&lt;em&gt;Failure at many levels&lt;br /&gt;
&lt;/em&gt;&lt;br /&gt;
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&lt;br /&gt;
These revelations cannot bode well for the ruling party or for a Prime Minister who had promised to be the nation&amp;rsquo;s &amp;ldquo;chowkidar&amp;rdquo; to prevent any such loot. But let us step away from the politics. It is now clear that the scams are fundamentally and overwhelmingly a failure of regulation.&lt;br /&gt;
&lt;br /&gt;
This failure has occurred at many levels. At the level of the bank, it is impossible to believe that only a handful of employees (the current fall guys) have been implicated. Senior management and auditors did not track these problematic transactions for years. The Reserve Bank of India (RBI) did not monitor banks properly and created opacity with new financial instruments. The Finance Ministry failed in its oversight and regulation. And successive Central governments, including the present one, did and have not done anything to address the obvious problems that were festering, and made them even worse.&lt;br /&gt;
&lt;br /&gt;
&lt;em&gt;Using LoUs&lt;br /&gt;
&lt;/em&gt;&lt;br /&gt;
The PNB scam relied on the existence of an unusual financial instrument, the letter of undertaking (LoU). This is a bank guarantee that enables a bank&amp;rsquo;s customer to raise short-term credit from another Indian bank&amp;rsquo;s foreign branch. It has to be another Indian bank, because the LoU as a form of underwriting other borrowing does not exist in other countries and is not even recognised by foreign banks. It was created by the RBI as an additional incentive to importers who could then avail of cheaper credit abroad, even though import credits already exist.&lt;br /&gt;
&lt;br /&gt;
Please &lt;a href=&quot;http://www.thehindu.com/opinion/lead/can-banking-recover/article22852646.ece?homepage=true&quot;&gt;click here&lt;/a&gt; to read more. &lt;br /&gt;
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We need stricter adherence to sound banking rules and more transparency from public and private players

The bank frauds involving Punjab National Bank (PNB) and the companies associated with businessmen Nirav Modi and Mehul Choksi as well as the Rotomac...&#039;
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-The Hindu

We need stricter adherence to sound banking rules and more transparency from public and private players

The bank frauds involving Punjab National Bank (PNB) and the companies associated with businessmen Nirav Modi and Mehul Choksi as well as the Rotomac..."/>
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                <strong>Can banking recover? -Jayati Ghosh</strong></h1>
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                <div align="justify">-The Hindu<br /><br /><em>We need stricter adherence to sound banking rules and more transparency from public and private players<br /></em><br />The bank frauds involving Punjab National Bank (PNB) and the companies associated with businessmen Nirav Modi and Mehul Choksi as well as the Rotomac case couldn&rsquo;t have come at a worse time. The Indian banking system is already reeling under the pressure of growing NPAs, or non-performing assets (less politely known as loans that are not going to be repaid), which will touch nearly ?10 lakh crore by March this year. This does not include the ?6 lakh crore already written-off. This has already caused a slowdown in disbursal of bank credit, in turn affecting productive investment.<br /><br /><em>Failure at many levels<br /></em><br />What has been revealed so far could be only the tip of the iceberg. The sheer ease with which fraudulent practices have been carried out and the length of time over which they continued suggest that the rot is much deeper. Other banks could have provided large loans without due diligence, which other companies then received without intent to repay; this means that many more loans gone bad could soon surface.<br /><br />These revelations cannot bode well for the ruling party or for a Prime Minister who had promised to be the nation&rsquo;s &ldquo;chowkidar&rdquo; to prevent any such loot. But let us step away from the politics. It is now clear that the scams are fundamentally and overwhelmingly a failure of regulation.<br /><br />This failure has occurred at many levels. At the level of the bank, it is impossible to believe that only a handful of employees (the current fall guys) have been implicated. Senior management and auditors did not track these problematic transactions for years. The Reserve Bank of India (RBI) did not monitor banks properly and created opacity with new financial instruments. The Finance Ministry failed in its oversight and regulation. And successive Central governments, including the present one, did and have not done anything to address the obvious problems that were festering, and made them even worse.<br /><br /><em>Using LoUs<br /></em><br />The PNB scam relied on the existence of an unusual financial instrument, the letter of undertaking (LoU). This is a bank guarantee that enables a bank&rsquo;s customer to raise short-term credit from another Indian bank&rsquo;s foreign branch. It has to be another Indian bank, because the LoU as a form of underwriting other borrowing does not exist in other countries and is not even recognised by foreign banks. It was created by the RBI as an additional incentive to importers who could then avail of cheaper credit abroad, even though import credits already exist.<br /><br />Please <a href="http://www.thehindu.com/opinion/lead/can-banking-recover/article22852646.ece?homepage=true" title="http://www.thehindu.com/opinion/lead/can-banking-recover/article22852646.ece?homepage=true">click here</a> to read more. <br /></div>               </font>
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-The Hindu&lt;br /&gt;
&lt;br /&gt;
&lt;em&gt;We need stricter adherence to sound banking rules and more transparency from public and private players&lt;br /&gt;
&lt;/em&gt;&lt;br /&gt;
The bank frauds involving Punjab National Bank (PNB) and the companies associated with businessmen Nirav Modi and Mehul Choksi as well as the Rotomac case couldn&amp;rsquo;t have come at a worse time. The Indian banking system is already reeling under the pressure of growing NPAs, or non-performing assets (less politely known as loans that are not going to be repaid), which will touch nearly ?10 lakh crore by March this year. This does not include the ?6 lakh crore already written-off. This has already caused a slowdown in disbursal of bank credit, in turn affecting productive investment.&lt;br /&gt;
&lt;br /&gt;
&lt;em&gt;Failure at many levels&lt;br /&gt;
&lt;/em&gt;&lt;br /&gt;
What has been revealed so far could be only the tip of the iceberg. The sheer ease with which fraudulent practices have been carried out and the length of time over which they continued suggest that the rot is much deeper. Other banks could have provided large loans without due diligence, which other companies then received without intent to repay; this means that many more loans gone bad could soon surface.&lt;br /&gt;
&lt;br /&gt;
These revelations cannot bode well for the ruling party or for a Prime Minister who had promised to be the nation&amp;rsquo;s &amp;ldquo;chowkidar&amp;rdquo; to prevent any such loot. But let us step away from the politics. It is now clear that the scams are fundamentally and overwhelmingly a failure of regulation.&lt;br /&gt;
&lt;br /&gt;
This failure has occurred at many levels. At the level of the bank, it is impossible to believe that only a handful of employees (the current fall guys) have been implicated. Senior management and auditors did not track these problematic transactions for years. The Reserve Bank of India (RBI) did not monitor banks properly and created opacity with new financial instruments. The Finance Ministry failed in its oversight and regulation. And successive Central governments, including the present one, did and have not done anything to address the obvious problems that were festering, and made them even worse.&lt;br /&gt;
&lt;br /&gt;
&lt;em&gt;Using LoUs&lt;br /&gt;
&lt;/em&gt;&lt;br /&gt;
The PNB scam relied on the existence of an unusual financial instrument, the letter of undertaking (LoU). This is a bank guarantee that enables a bank&amp;rsquo;s customer to raise short-term credit from another Indian bank&amp;rsquo;s foreign branch. It has to be another Indian bank, because the LoU as a form of underwriting other borrowing does not exist in other countries and is not even recognised by foreign banks. It was created by the RBI as an additional incentive to importers who could then avail of cheaper credit abroad, even though import credits already exist.&lt;br /&gt;
&lt;br /&gt;
Please &lt;a href=&quot;http://www.thehindu.com/opinion/lead/can-banking-recover/article22852646.ece?homepage=true&quot;&gt;click here&lt;/a&gt; to read more. &lt;br /&gt;
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We need stricter adherence to sound banking rules and more transparency from public and private players

The bank frauds involving Punjab National Bank (PNB) and the companies associated with businessmen Nirav Modi and Mehul Choksi as well as the Rotomac...&#039;,
	&#039;disp&#039; =&gt; &#039;&lt;div align=&quot;justify&quot;&gt;-The Hindu&lt;br /&gt;&lt;br /&gt;&lt;em&gt;We need stricter adherence to sound banking rules and more transparency from public and private players&lt;br /&gt;&lt;/em&gt;&lt;br /&gt;The bank frauds involving Punjab National Bank (PNB) and the companies associated with businessmen Nirav Modi and Mehul Choksi as well as the Rotomac case couldn&amp;rsquo;t have come at a worse time. The Indian banking system is already reeling under the pressure of growing NPAs, or non-performing assets (less politely known as loans that are not going to be repaid), which will touch nearly ?10 lakh crore by March this year. This does not include the ?6 lakh crore already written-off. This has already caused a slowdown in disbursal of bank credit, in turn affecting productive investment.&lt;br /&gt;&lt;br /&gt;&lt;em&gt;Failure at many levels&lt;br /&gt;&lt;/em&gt;&lt;br /&gt;What has been revealed so far could be only the tip of the iceberg. The sheer ease with which fraudulent practices have been carried out and the length of time over which they continued suggest that the rot is much deeper. Other banks could have provided large loans without due diligence, which other companies then received without intent to repay; this means that many more loans gone bad could soon surface.&lt;br /&gt;&lt;br /&gt;These revelations cannot bode well for the ruling party or for a Prime Minister who had promised to be the nation&amp;rsquo;s &amp;ldquo;chowkidar&amp;rdquo; to prevent any such loot. But let us step away from the politics. It is now clear that the scams are fundamentally and overwhelmingly a failure of regulation.&lt;br /&gt;&lt;br /&gt;This failure has occurred at many levels. At the level of the bank, it is impossible to believe that only a handful of employees (the current fall guys) have been implicated. Senior management and auditors did not track these problematic transactions for years. The Reserve Bank of India (RBI) did not monitor banks properly and created opacity with new financial instruments. The Finance Ministry failed in its oversight and regulation. And successive Central governments, including the present one, did and have not done anything to address the obvious problems that were festering, and made them even worse.&lt;br /&gt;&lt;br /&gt;&lt;em&gt;Using LoUs&lt;br /&gt;&lt;/em&gt;&lt;br /&gt;The PNB scam relied on the existence of an unusual financial instrument, the letter of undertaking (LoU). This is a bank guarantee that enables a bank&amp;rsquo;s customer to raise short-term credit from another Indian bank&amp;rsquo;s foreign branch. It has to be another Indian bank, because the LoU as a form of underwriting other borrowing does not exist in other countries and is not even recognised by foreign banks. It was created by the RBI as an additional incentive to importers who could then avail of cheaper credit abroad, even though import credits already exist.&lt;br /&gt;&lt;br /&gt;Please &lt;a href=&quot;http://www.thehindu.com/opinion/lead/can-banking-recover/article22852646.ece?homepage=true&quot; title=&quot;http://www.thehindu.com/opinion/lead/can-banking-recover/article22852646.ece?homepage=true&quot;&gt;click here&lt;/a&gt; to read more. &lt;br /&gt;&lt;/div&gt;&#039;,
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-The Hindu&lt;br /&gt;
&lt;br /&gt;
&lt;em&gt;We need stricter adherence to sound banking rules and more transparency from public and private players&lt;br /&gt;
&lt;/em&gt;&lt;br /&gt;
The bank frauds involving Punjab National Bank (PNB) and the companies associated with businessmen Nirav Modi and Mehul Choksi as well as the Rotomac case couldn&amp;rsquo;t have come at a worse time. The Indian banking system is already reeling under the pressure of growing NPAs, or non-performing assets (less politely known as loans that are not going to be repaid), which will touch nearly ?10 lakh crore by March this year. This does not include the ?6 lakh crore already written-off. This has already caused a slowdown in disbursal of bank credit, in turn affecting productive investment.&lt;br /&gt;
&lt;br /&gt;
&lt;em&gt;Failure at many levels&lt;br /&gt;
&lt;/em&gt;&lt;br /&gt;
What has been revealed so far could be only the tip of the iceberg. The sheer ease with which fraudulent practices have been carried out and the length of time over which they continued suggest that the rot is much deeper. Other banks could have provided large loans without due diligence, which other companies then received without intent to repay; this means that many more loans gone bad could soon surface.&lt;br /&gt;
&lt;br /&gt;
These revelations cannot bode well for the ruling party or for a Prime Minister who had promised to be the nation&amp;rsquo;s &amp;ldquo;chowkidar&amp;rdquo; to prevent any such loot. But let us step away from the politics. It is now clear that the scams are fundamentally and overwhelmingly a failure of regulation.&lt;br /&gt;
&lt;br /&gt;
This failure has occurred at many levels. At the level of the bank, it is impossible to believe that only a handful of employees (the current fall guys) have been implicated. Senior management and auditors did not track these problematic transactions for years. The Reserve Bank of India (RBI) did not monitor banks properly and created opacity with new financial instruments. The Finance Ministry failed in its oversight and regulation. And successive Central governments, including the present one, did and have not done anything to address the obvious problems that were festering, and made them even worse.&lt;br /&gt;
&lt;br /&gt;
&lt;em&gt;Using LoUs&lt;br /&gt;
&lt;/em&gt;&lt;br /&gt;
The PNB scam relied on the existence of an unusual financial instrument, the letter of undertaking (LoU). This is a bank guarantee that enables a bank&amp;rsquo;s customer to raise short-term credit from another Indian bank&amp;rsquo;s foreign branch. It has to be another Indian bank, because the LoU as a form of underwriting other borrowing does not exist in other countries and is not even recognised by foreign banks. It was created by the RBI as an additional incentive to importers who could then avail of cheaper credit abroad, even though import credits already exist.&lt;br /&gt;
&lt;br /&gt;
Please &lt;a href=&quot;http://www.thehindu.com/opinion/lead/can-banking-recover/article22852646.ece?homepage=true&quot;&gt;click here&lt;/a&gt; to read more. &lt;br /&gt;
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-The Hindu

We need stricter adherence to sound banking rules and more transparency from public and private players

The bank frauds involving Punjab National Bank (PNB) and the companies associated with businessmen Nirav Modi and Mehul Choksi as well as the Rotomac...&#039;
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-The Hindu

We need stricter adherence to sound banking rules and more transparency from public and private players

The bank frauds involving Punjab National Bank (PNB) and the companies associated with businessmen Nirav Modi and Mehul Choksi as well as the Rotomac..."/>
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                <strong>Can banking recover? -Jayati Ghosh</strong></h1>
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                <div align="justify">-The Hindu<br /><br /><em>We need stricter adherence to sound banking rules and more transparency from public and private players<br /></em><br />The bank frauds involving Punjab National Bank (PNB) and the companies associated with businessmen Nirav Modi and Mehul Choksi as well as the Rotomac case couldn&rsquo;t have come at a worse time. The Indian banking system is already reeling under the pressure of growing NPAs, or non-performing assets (less politely known as loans that are not going to be repaid), which will touch nearly ?10 lakh crore by March this year. This does not include the ?6 lakh crore already written-off. This has already caused a slowdown in disbursal of bank credit, in turn affecting productive investment.<br /><br /><em>Failure at many levels<br /></em><br />What has been revealed so far could be only the tip of the iceberg. The sheer ease with which fraudulent practices have been carried out and the length of time over which they continued suggest that the rot is much deeper. Other banks could have provided large loans without due diligence, which other companies then received without intent to repay; this means that many more loans gone bad could soon surface.<br /><br />These revelations cannot bode well for the ruling party or for a Prime Minister who had promised to be the nation&rsquo;s &ldquo;chowkidar&rdquo; to prevent any such loot. But let us step away from the politics. It is now clear that the scams are fundamentally and overwhelmingly a failure of regulation.<br /><br />This failure has occurred at many levels. At the level of the bank, it is impossible to believe that only a handful of employees (the current fall guys) have been implicated. Senior management and auditors did not track these problematic transactions for years. The Reserve Bank of India (RBI) did not monitor banks properly and created opacity with new financial instruments. The Finance Ministry failed in its oversight and regulation. And successive Central governments, including the present one, did and have not done anything to address the obvious problems that were festering, and made them even worse.<br /><br /><em>Using LoUs<br /></em><br />The PNB scam relied on the existence of an unusual financial instrument, the letter of undertaking (LoU). This is a bank guarantee that enables a bank&rsquo;s customer to raise short-term credit from another Indian bank&rsquo;s foreign branch. It has to be another Indian bank, because the LoU as a form of underwriting other borrowing does not exist in other countries and is not even recognised by foreign banks. It was created by the RBI as an additional incentive to importers who could then avail of cheaper credit abroad, even though import credits already exist.<br /><br />Please <a href="http://www.thehindu.com/opinion/lead/can-banking-recover/article22852646.ece?homepage=true" title="http://www.thehindu.com/opinion/lead/can-banking-recover/article22852646.ece?homepage=true">click here</a> to read more. <br /></div>               </font>
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-The Hindu<br />
<br />
<em>We need stricter adherence to sound banking rules and more transparency from public and private players<br />
</em><br />
The bank frauds involving Punjab National Bank (PNB) and the companies associated with businessmen Nirav Modi and Mehul Choksi as well as the Rotomac case couldn&rsquo;t have come at a worse time. The Indian banking system is already reeling under the pressure of growing NPAs, or non-performing assets (less politely known as loans that are not going to be repaid), which will touch nearly ?10 lakh crore by March this year. This does not include the ?6 lakh crore already written-off. This has already caused a slowdown in disbursal of bank credit, in turn affecting productive investment.<br />
<br />
<em>Failure at many levels<br />
</em><br />
What has been revealed so far could be only the tip of the iceberg. The sheer ease with which fraudulent practices have been carried out and the length of time over which they continued suggest that the rot is much deeper. Other banks could have provided large loans without due diligence, which other companies then received without intent to repay; this means that many more loans gone bad could soon surface.<br />
<br />
These revelations cannot bode well for the ruling party or for a Prime Minister who had promised to be the nation&rsquo;s &ldquo;chowkidar&rdquo; to prevent any such loot. But let us step away from the politics. It is now clear that the scams are fundamentally and overwhelmingly a failure of regulation.<br />
<br />
This failure has occurred at many levels. At the level of the bank, it is impossible to believe that only a handful of employees (the current fall guys) have been implicated. Senior management and auditors did not track these problematic transactions for years. The Reserve Bank of India (RBI) did not monitor banks properly and created opacity with new financial instruments. The Finance Ministry failed in its oversight and regulation. And successive Central governments, including the present one, did and have not done anything to address the obvious problems that were festering, and made them even worse.<br />
<br />
<em>Using LoUs<br />
</em><br />
The PNB scam relied on the existence of an unusual financial instrument, the letter of undertaking (LoU). This is a bank guarantee that enables a bank&rsquo;s customer to raise short-term credit from another Indian bank&rsquo;s foreign branch. It has to be another Indian bank, because the LoU as a form of underwriting other borrowing does not exist in other countries and is not even recognised by foreign banks. It was created by the RBI as an additional incentive to importers who could then avail of cheaper credit abroad, even though import credits already exist.<br />
<br />
Please <a href="http://www.thehindu.com/opinion/lead/can-banking-recover/article22852646.ece?homepage=true">click here</a> to read more. <br />
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We need stricter adherence to sound banking rules and more transparency from public and private players

The bank frauds involving Punjab National Bank (PNB) and the companies associated with businessmen Nirav Modi and Mehul Choksi as well as the Rotomac...',
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-The Hindu<br />
<br />
<em>We need stricter adherence to sound banking rules and more transparency from public and private players<br />
</em><br />
The bank frauds involving Punjab National Bank (PNB) and the companies associated with businessmen Nirav Modi and Mehul Choksi as well as the Rotomac case couldn&rsquo;t have come at a worse time. The Indian banking system is already reeling under the pressure of growing NPAs, or non-performing assets (less politely known as loans that are not going to be repaid), which will touch nearly ?10 lakh crore by March this year. This does not include the ?6 lakh crore already written-off. This has already caused a slowdown in disbursal of bank credit, in turn affecting productive investment.<br />
<br />
<em>Failure at many levels<br />
</em><br />
What has been revealed so far could be only the tip of the iceberg. The sheer ease with which fraudulent practices have been carried out and the length of time over which they continued suggest that the rot is much deeper. Other banks could have provided large loans without due diligence, which other companies then received without intent to repay; this means that many more loans gone bad could soon surface.<br />
<br />
These revelations cannot bode well for the ruling party or for a Prime Minister who had promised to be the nation&rsquo;s &ldquo;chowkidar&rdquo; to prevent any such loot. But let us step away from the politics. It is now clear that the scams are fundamentally and overwhelmingly a failure of regulation.<br />
<br />
This failure has occurred at many levels. At the level of the bank, it is impossible to believe that only a handful of employees (the current fall guys) have been implicated. Senior management and auditors did not track these problematic transactions for years. The Reserve Bank of India (RBI) did not monitor banks properly and created opacity with new financial instruments. The Finance Ministry failed in its oversight and regulation. And successive Central governments, including the present one, did and have not done anything to address the obvious problems that were festering, and made them even worse.<br />
<br />
<em>Using LoUs<br />
</em><br />
The PNB scam relied on the existence of an unusual financial instrument, the letter of undertaking (LoU). This is a bank guarantee that enables a bank&rsquo;s customer to raise short-term credit from another Indian bank&rsquo;s foreign branch. It has to be another Indian bank, because the LoU as a form of underwriting other borrowing does not exist in other countries and is not even recognised by foreign banks. It was created by the RBI as an additional incentive to importers who could then avail of cheaper credit abroad, even though import credits already exist.<br />
<br />
Please <a href="http://www.thehindu.com/opinion/lead/can-banking-recover/article22852646.ece?homepage=true">click here</a> to read more. <br />
</div>',
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$metaTitle = 'LATEST NEWS UPDATES | Can banking recover? -Jayati Ghosh'
$metaKeywords = 'Loan Default,Privatisation of Public Sector Banks,banking,Letters of Undertaking (LoUs)'
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-The Hindu

We need stricter adherence to sound banking rules and more transparency from public and private players

The bank frauds involving Punjab National Bank (PNB) and the companies associated with businessmen Nirav Modi and Mehul Choksi as well as the Rotomac...'
$disp = '<div align="justify">-The Hindu<br /><br /><em>We need stricter adherence to sound banking rules and more transparency from public and private players<br /></em><br />The bank frauds involving Punjab National Bank (PNB) and the companies associated with businessmen Nirav Modi and Mehul Choksi as well as the Rotomac case couldn&rsquo;t have come at a worse time. The Indian banking system is already reeling under the pressure of growing NPAs, or non-performing assets (less politely known as loans that are not going to be repaid), which will touch nearly ?10 lakh crore by March this year. This does not include the ?6 lakh crore already written-off. This has already caused a slowdown in disbursal of bank credit, in turn affecting productive investment.<br /><br /><em>Failure at many levels<br /></em><br />What has been revealed so far could be only the tip of the iceberg. The sheer ease with which fraudulent practices have been carried out and the length of time over which they continued suggest that the rot is much deeper. Other banks could have provided large loans without due diligence, which other companies then received without intent to repay; this means that many more loans gone bad could soon surface.<br /><br />These revelations cannot bode well for the ruling party or for a Prime Minister who had promised to be the nation&rsquo;s &ldquo;chowkidar&rdquo; to prevent any such loot. But let us step away from the politics. It is now clear that the scams are fundamentally and overwhelmingly a failure of regulation.<br /><br />This failure has occurred at many levels. At the level of the bank, it is impossible to believe that only a handful of employees (the current fall guys) have been implicated. Senior management and auditors did not track these problematic transactions for years. The Reserve Bank of India (RBI) did not monitor banks properly and created opacity with new financial instruments. The Finance Ministry failed in its oversight and regulation. And successive Central governments, including the present one, did and have not done anything to address the obvious problems that were festering, and made them even worse.<br /><br /><em>Using LoUs<br /></em><br />The PNB scam relied on the existence of an unusual financial instrument, the letter of undertaking (LoU). This is a bank guarantee that enables a bank&rsquo;s customer to raise short-term credit from another Indian bank&rsquo;s foreign branch. It has to be another Indian bank, because the LoU as a form of underwriting other borrowing does not exist in other countries and is not even recognised by foreign banks. It was created by the RBI as an additional incentive to importers who could then avail of cheaper credit abroad, even though import credits already exist.<br /><br />Please <a href="http://www.thehindu.com/opinion/lead/can-banking-recover/article22852646.ece?homepage=true" title="http://www.thehindu.com/opinion/lead/can-banking-recover/article22852646.ece?homepage=true">click here</a> to read more. <br /></div>'
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Can banking recover? -Jayati Ghosh

-The Hindu We need stricter adherence to sound banking rules and more transparency from public and private players The bank frauds involving Punjab National Bank (PNB) and the companies associated with businessmen Nirav Modi and Mehul Choksi as well as the Rotomac case couldn’t have come at a worse time. The Indian banking system is already reeling under the pressure of growing NPAs, or non-performing assets (less politely known as loans that are not going to be repaid), which will touch nearly ?10 lakh crore by March this year. This does not include the ?6 lakh crore already written-off. This has already caused a slowdown in disbursal of bank credit, in turn affecting productive investment. Failure at many levels What has been revealed so far could be only the tip of the iceberg. The sheer ease with which fraudulent practices have been carried out and the length of time over which they continued suggest that the rot is much deeper. Other banks could have provided large loans without due diligence, which other companies then received without intent to repay; this means that many more loans gone bad could soon surface. These revelations cannot bode well for the ruling party or for a Prime Minister who had promised to be the nation’s “chowkidar” to prevent any such loot. But let us step away from the politics. It is now clear that the scams are fundamentally and overwhelmingly a failure of regulation. This failure has occurred at many levels. At the level of the bank, it is impossible to believe that only a handful of employees (the current fall guys) have been implicated. Senior management and auditors did not track these problematic transactions for years. The Reserve Bank of India (RBI) did not monitor banks properly and created opacity with new financial instruments. The Finance Ministry failed in its oversight and regulation. And successive Central governments, including the present one, did and have not done anything to address the obvious problems that were festering, and made them even worse. Using LoUs The PNB scam relied on the existence of an unusual financial instrument, the letter of undertaking (LoU). This is a bank guarantee that enables a bank’s customer to raise short-term credit from another Indian bank’s foreign branch. It has to be another Indian bank, because the LoU as a form of underwriting other borrowing does not exist in other countries and is not even recognised by foreign banks. It was created by the RBI as an additional incentive to importers who could then avail of cheaper credit abroad, even though import credits already exist. Please click here to read more.