A parliamentary panel has called Reserve Bank Governor Urjit Patel on May 17 to answer queries on a spate of banking scams unearthed in the last few months and mounting bad loans in the system, sources said today.
The Standing Committee on Finance, headed by senior Congress leader M Veerappa Moily, at its meeting here raised several queries related to the banking sector with Financial Services Secretary Rajiv Kumar.
The panel met against the backdrop of about USD 2 billion fraud in the country's second largest state-run bank PNB. The fraud was allegedly perpetrated by billionaire jewellery designer Nirav Modi and his uncle Mehul Choksi.
Sources said some of the members, including BJP MP Nishikant Dubey, wondered if the RBI has failed as regulator to check bad loans despite having instruments like corporate debt restructuring.
Former Prime Minister Manmohan Singh, who is member of the committee, also attended the meeting.
"The panel would like to know what kind of powers the RBI governor needs," another source said, adding that regulation is an important part and that is why the governor has been called.
The panel, sources said, discussed a spate of banking scams, both in public and private sector banks.
The finance ministry officials gave part replies to queries of the lawmakers and they have been given three weeks time to file a complete report on their questions.
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