House panel to grill RBI guv on bank frauds

House panel to grill RBI guv on bank frauds

RBI Governor Urjit Patel. REUTERS

Amid the spotlight on banking fraud cases, including the latest related to Nirav Modi and Mehul Choksi, a parliamentary panel has summoned RBI Governor Urjit Patel before it on June 12.

Patel was earlier supposed to appear before the panel May 17 but the sitting of the Standing Committee on Finance, headed by senior Congress leader M Veerappa Moily, has been advanced to June 12.

The panel is examining the challenges before the banking sector in India and the way forward.

It will also examine the issue of non-performing assets (NPA) and stressed assets in banks and financial institutions.

The panel members will also be seeking a written response from the RBI on the issue of rising NPAs.

A member of the panel speaking on the condition of anonymity said that in an earlier meeting, some of the committee members had raised serious concerns over the "syphoning off" of hard-earned money of people from public sector banks in such a manner (referring to the Nirav Modi scam).

In the meeting, the panel members had wondered how could the scam go unnoticed for such a long time and also questioned the bank officials on why there is such sharp difference in the NPA level of private banks vis a vis that of public sector banks.