Letter to BS: RBI governor is trying to shift blame on FinMin over PNB scam

It refers to “PSBs: Buck passing between RBI and MoF” (March 19). Blame game is the dirtiest game in the world and how convenient it is for the Reserve Bank of India (RBI) Governor, Urjit Patel, to say that the RBI does not have enough power over public sector banks (PSB) and it cannot remove the directors or change the management. 

My view is the RBI Governor is just trying to shift the blame on the finance ministry, which is unfortunate to say the least. For the smooth functioning of the PSBs, both the RBI and the government need to work in tandem. Yes, the government should not interfere in the PSB's day-to-day functioning and let the RBI function as an autonomous body. 

The author has asked some valid questions to the RBI Governor and if Mr Patel does not have strong and valid answers to these questions then he does not have any right to shift the blame as some of the blame for the Punjab National Bank (PNB) fiasco definitely lies with the regulator. The RBI's representative on the PNB board should answer some of these questions. 

No one is better equipped than him to throw light on this issue. After this scam, there were debates on privatisation but it is issues like governance, regular and tight audit and transparency that hold the key. Even private banks have had issues — though of smaller magnitude. So privatisation is not the answer, owning up to the mistake and ratifying it is the answer.

Bal Govind Noida

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