PNB crisis: RBI's Malegam-led panel to look into NPA divergence, bank fraud

The Reserve Bank of India (RBI) on Tuesday constituted an expert panel that will look at the divergence in asset classification and provisions reported by banks vis-à-vis those interpreted by the central bank’s auditors, and also to examine the rising incidence of fraud in the banking system.

The panel will be headed by former RBI board member Y H Malegam, who had also earlier led several RBI committees on important reform measures.

The panel will explore “factors leading to an increasing incidence of fraud in banks and the measures (including IT interventions) needed to curb and prevent it; and the role and