RBI enjoys equal regulatory power over both private and public banks: Govt

RBI tells government no 'systematic irregularity' in banking system; PNB fraud due to failure of bank's three layers of defence

The Union government has informed the Parliament that the regulations framed by the Reserve Bank of India (RBI) apply equally to both public and private sector banks, in the light of the ongoing debate that the regulator doesn't enjoy full regulatory supervision over state-run banks as against private banks.

“Fraud is an act of commission and the regulatory measures instituted by RBI apply equally to public and private sector banks. As such perpetration of frauds is not linked to ownership structure,” Minister of State for Finance Shiv Pratap Shukla said, in a written reply in Rajya Sabha on Tuesday. Finance