RBI Governor Urjit Patel Requested To Seem Earlier than Parliamentary Panel On Financial institution Scams

RBI Governor Asked To Appear Before Parliamentary Panel On Bank Scams

RBI Governor Urjit Patel will probably be requested to make clear on current financial institution scams and dangerous loans, sources mentioned

New Delhi:  A parliamentary panel has requested Reserve Financial institution of India Governor Urjit Patel to look earlier than it on Could 17 to make clear on current banking scams, individuals accustomed to the matter mentioned. The standing committee on finance, headed by Congress chief M Veerappa Moily, immediately raised queries in regards to the banking sector with monetary providers secretary Rajiv Kumar.

“We have now invited the RBI governor on Could 17. We will probably be asking him in regards to the scams and different banking rules,” an individual with direct information of the matter advised information company Press Belief of India.

Former Prime Minister Manmohan Singh, who can also be a member of the committee, attended the assembly.

India’s banking sector has been hit by a number of fraud, one of many largest being the alleged financial institution fraud in Punjab Nationwide Financial institution or PNB, perpetrated by billionaire jeweller Nirav Modi and his uncle Mehul Choksi. Each usually are not within the nation. The authorities say they’re making an attempt to convey the 2 businessmen — accused within the over Rs 12,500 crore PNB rip-off — to India.

Urjit Patel lately mentioned that the RBI does not have sufficient powers to take care of pubic sector banks or PSBs.

pnb scam

Nirav Modi and his uncle Mehul Choksi are accused within the Punjab Nationwide Financial institution (PNB) fraud case

“We want to know what sort of powers the RBI governor wants,” one other particular person with direct information of the matter mentioned. Regulation is a vital half and that’s the reason the governor has been referred to as, mentioned the one who requested to not be recognized.

The parliamentary panel mentioned a spate of banking scams, each in private and non-private sector banks, individuals accustomed to the matter mentioned.On whether or not the PNB rip-off and the ICICI Financial institution alleged battle of curiosity case figured in the course of the assembly, one of many individuals quoted above mentioned that points associated with “all industrial banks, together with ICICI Financial institution” had been mentioned.

The finance ministry officers gave half replies to queries of the lawmakers they usually have been given three weeks to file a whole report on the questions.

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