Letter to BS: RBI governor Urjit Patel breaks silence on PNB fraud

The truth is when bank lending to large projects including infrastructure was growing fast, possibly without critical appraisal, the RBI kept quiet or it did not have sufficient data

The Reserve Bank of India (RBI) governor has returned the compliments to the government in the blame game for the fraud at  Punjab National Bank (PNB), with a side kick to truant public sector banks (PSB). I have my sympathy for the RBI because of what the governor called “dual control” over PSBs but find it difficult to agree that this has made the RBI helpless.
 
The RBI has always had a nominee director on the boards of banks; so also, the government. No large credit proposal or any other matter brought to the board could be passed without