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RBI Governor called by parliamentary panel on May 17

IANS  |  New Delhi 

A parliamentary panel has called RBI on May 17 to answer queries on frauds and the powers that the central needs for better regulation of (PSBs).

Sources said the decision was taken at a meeting of the Standing Committee on Finance, headed by Congress' M. Veerappa Moily.

"The Reserve of India (RBI) has been invited to attend the meeting on May 17," a source said.

Last month, Patel said the RBI's regulatory powers over PSBs were weaker than those over the private sector banks.

His remarks came in the wake of frauds including that of over Rs 13,500 crore at the Punjab National (PNB).

According to the sources, the parliamentary panel would ask the RBI questions about the frauds and better regulation.

The panel members also made several queries about the sector to

Sources said some members also referred to reports of cash crunch in different parts of the country.

officials answered some queries and sought three weeks to file replies to the others.

Sources said was also present.

The committee discussed frauds in both public and private sector banks. The PNB fraud was discussed with special reference to

Sources said member Nishikant Dubey said that RBI had failed to discharge its role in preventing frauds and has sought changes in the Reserve of India Act 1934 to fix responsibility in such cases.

Sources said some opposition members asked if middle-level officials were the only ones responsible for the PNB fraud and if it was a systemic failure. They said in the frauds surfacing in the sector, there were mistakes which were being repeated.

A member asked about the pace of corrective measures implemented in the wake of the frauds and what more needs to be done.

The panel members also raised queries about the controversy over conflict of interest in the Rs 3,250 crore loan given by the ICICI to the in 2012. The controlling shareholder of co-founded a separate company with the spouse of ICICI's A significant portion of the loan has since become non-performing.

Former was among the panel members present.

Another source said the panel discussed the situation in the sector and the way ahead with questions about the non-performing assets, Insolvency and Bankruptcy Code and auditing standards.

"It was more of a questioning meeting," the source said.

--IANS

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(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: Tue, April 17 2018. 22:46 IST
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