Parl panel calls RBI Governor for clarity on bank scams

RSTV Bureau
File photo of Punjab National Bank.

File photo of Punjab National Bank.

The Parliamentary Standing Committee on Finance 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. The parliamentary panel, headed by veteran Congress leader M Veerappa Moily, has raised several queries related to the banking sector with Financial Services Secretary Rajiv Kumar.

“We have invited the RBI Governor on May 17. We will be asking him about the scams and other banking regulations,” said a source after the panel meeting on Tuesday.

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

Urjit Patel had recently said that the RBI doesn’t have adequate powers to deal with public sector banks. “We would like to know what kind of powers the RBI Governor needs,” sources told, 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 with “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.

The Parliamentary Standing Committee had last met on March 9 in the aftermath of the over Rs 13,000 crore fraud in Punjab National Bank.

It had then asked the ministry to institute a comprehensive enquiry encompassing systemic elements in the case and submit its report within a month.