After Effects of the Nirav Modi Scam
The Indian banking system has been rocked by a scandal of gigantic magnitude. Two Indian jewelers named Nirav Modi and Mehul Choksi have fled the nation. They owe Indian public sector banks over $2 billion. The banks were fraudulently deceived into making these loans using instruments such as Letters of Credit and Letters of Understanding (LOU).
Also, there was internal corruption on the part of the banks. These jewelers had bribed the bank's officials who misused their powers to grant these loans.
After the Nirav Modi scam was unearthed, the Reserve Bank of India ordered deeper inspections of loan books. This led to the unearthing of many more scams. The extent of rot in the Indian banking system is not known as of now.
Both the government and the Reserve Bank of India have been under immense pressure to take corrective actions. Some corrective actions have been taken. However, it is likely that these corrective actions will also have a negative impact on the Indian economy.

In this article, we will discuss some of the after-effects of the Nirav Modi scam:
To sum it up, banking will be more tightly regulated. These regulations will add up to extra cost that will have to be borne by the importers. Nirav Modi has made life difficult for all importers in India.

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