File Picture Courtesy : India TV
Ever since the PNB scam broke out, Reserve Bank of India governor Urjit Patel had maintained a silence . Finally Patel has spoken out and has now said that the RBI’s very limited authority under the banking acts, as well as the custom to hold the PSB boards accountable has become problematic.
“We at Reserve Bank also feel anger, hurt and pain at banking sector frauds and irregularities. Banking frauds amount to looting of our country’s future by some in the business community in cahoots with some lenders. If we need to face brickbats and be ‘the Neelakantha’ consuming this poison, we will do so as our duty,” said Patel on the banking frauds.
In a speech at law university in Gujarat, RBI Governor Urjit Patel said “Market discipline mechanism for public sector banks is appreciably weaker compared to that at private banks.”
He said that it is ‘infeasible’ for banking regulator to be in every nook and corner of banking activity to rule out frauds by being there.
