RBI’s harsh stance on virtual currencies turns into prohibition

RBI has now issued a circular prohibiting dealing in virtual currencies. This can be accessed here. Reserve Bank has repeatedly through its public notices on December 24, 2013, February 01, 2017 and December 05, 2017, cautioned users, holders and traders of virtual currencies, including Bitcoins, regarding various risks associated in dealing with such virtual currencies. …

PNB Fraud – Some Updates

We have covered about the technicalities of the PNB fraud in our previous article here. Now we shall see what is going on now in this respect: What PNB and other banks are doing about it? What was a Rs. 11,400 crore scam had become a Rs. 12,600 crore fraud, as PNB reported additional unauthorised …

Cabinet Approves Establishment of NFRA

Goaded by the fact that the recent scams had taken place in spite of statutory and internal audits, the Cabinet has cleared the proposal for establishment of the National Financial Reporting Authority and creation of key posts in NFRA. The jurisdiction of NFRA for investigation of Chartered Accountants and their firms under section 132 of …

High-risk NBFCs

The Financial Intelligence Unit has published the names of 9,491 NBFCs as high-risk financial institutions on account of non-compliance with PMLA and PML Rules, i.e. non-registration of Principal Officer (PO) as on 31.01.2018. As per the provisions of Prevention of Money Laundering Act, NBFCs are supposed to appoint a principal officer and file reports on …

PNB Fraud – The Story and Some Questions

Caught in the biggest banking-related fraud in India’s history, PNB, one of the largest PSBs, has been sending shock waves through the country, toppling investors’ and taxpayers’ confidence in the regulatory mechanism and the banking system. . We will see what has gone wrong, in the following paragraphs: 1. What is the quantum of the …