Par Panel raps FinMin for monitoring of assurances in LS

A Parliamentary Committee today asked Finance Ministry to streamline the mechanism for timely implementation of assurances given in the Lok Sabha, saying that the current monitoring system is "grossly inadequate and ineffective".
The Committee on Government assurances has also asked the Finance Ministry to impress upon RBI to improve transparency in pricing and loan documentation.
As regards pricing of floating rate loan products, the Committee noted that a committee under RBI Deputy Governor had submitted its report in April 2014 after reviewing the prevalent practice of pricing of such products in India.
"The Committee expect the Ministry to impress upon RBI to take up follow up action expeditiously to improve transparency in pricing and loan documentation so that the assurance could be implemented without further delay," said the report of the Committee on Government assurances.

The Committee, headed by Lok Sabha member Ramesh Pokhriyal Nishank, noted that as many as 22 assurances up to 11th session of 15th Lok Sabha pertaining to Department of Financial Services in Finance Ministry are pending for implementation.
"...The mechanism in place in the Finance Ministry to monitor the timely implementation of assurances is grossly inadequate and ineffective," the Committee noted.

Out of 22, first three assurances are pending for more than 10 years since 2000, and the next six assurances for more than five years.
"The inordinate delay in the implementation of the assurances indicate that scant attention is being given by the Ministry in the implementation of assurances," it said.

The Ministry, it said, should "strengthen and streamline" the procedures so that pending assurances are implemented without delay.