Urjit Patel, governor of the Reserve Bank of India. (Photographer: Dhiraj Singh/Bloomberg)

Parliamentary Panel Calls RBI Governor To Answer Queries On Bank Scams

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, people familiar with the matter said.

The Standing Committee on Finance, headed by veteran Congress leader M Veerappa Moily, today raised several queries related to the banking sector with Financial Services Secretary Rajiv Kumar. The panel will raise these questions with the governor, the people said.

Former Prime Minister Manmohan Singh, who is a member of the Committee, attended the meeting.

Also Read: Fixing Governance Problems Of Indian Public Sector Banks

Patel had recently said that the RBI doesn’t have adequate powers to deal with pubic sector banks.

“We 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.

When asked if PNB and ICICI Bank issues figured during the meeting, the source said issues related to “all commercial banks, including ICICI Bank” were discussed.

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 questions.

Also Read: Fear Of Banking Sector Logjam Has Abated, Says NITI Aayog’s Rajiv Kumar

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