Reserve Bank of India Governor Urjit Patel has been summoned by a parliamentary panel to answer questions related to the recent scams that have hit the banking sector. He has been asked to appear before it on May 17. The Standing Committee on Finance, headed by veteran Congress leader M Veerappa Moily, Tuesday 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 PTI source. Former Prime Minister Manmohan Singh, who is a member of the Committee, attended the meeting.
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,” another source told PTI, 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.
With PTI inputs