MUMBAI—India’s state-run Punjab National Bank has stepped up its controls on the use of global payments network SWIFT following an alleged $1.77 billion fraud, according to memos issued this month and seen by Reuters.
India’s second-biggest state lender this month revealed the country’s biggest loan fraud, which it alleges was committed by two junior officials at a Mumbai branch, who issued unauthorized “letters of undertaking” (LOU) via SWIFT, for firms linked to a billionaire jeweler Nirav Modi and his uncle Mehul Choksi.
