Guarding the financial system

Govt, RBI must work on improving supervision

Reserve Bank of India (RBI) Governor Shaktikanta Das is reported to have been questioned by the central bank’s board members about frauds in the banking system. The central bank needs to answer a lot of such questions after the latest scam involving Punjab & Maharashtra Co-operative (PMC) Bank. The management of the bank was manipulating records for years, but the wrongdoing came to light only after the bank on its own disclosed the matter to the regulator. Regrettably, PMC is not an isolated incident where the RBI failed to live up to expectations. The deficiency in oversight is also evident