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Par panel calls RBI Guv to answer queries on bank scams

Press Trust of India  |  New Delhi 

A parliamentary panel has called Reserve on May 17 to answer queries on a spate of 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 M Veerappa Moily, at its meeting here raised several queries related to the sector with Secretary

The panel met against the backdrop of about USD 2 billion fraud in the country's second largest state-run The fraud was allegedly perpetrated by and his uncle

Several other frauds have also come to light in the past couple of months. Certain private lenders, including ICICI and Axis Bank, were too in the for wrong reasons.

Sources said some of the members, including Nishikant Dubey, wondered if the RBI has failed as regulator to check bad loans despite having instruments like corporate debt restructuring.

"The committee has invited the RBI on May 17. The members will be asking him about the scams and other regulations," a source said.

Former Manmohan Singh, who is member of the committee, also attended the meeting.

The RBI had recently said that the central bank did not have adequate powers to deal with

"The panel would like to know what kind of powers the 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.

When asked if and issues figured during the meeting, the source said issues related with "all commercial banks, including ICICI Bank" were discussed.

The 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.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Tue, April 17 2018. 18:20 IST