NEW DELHI: For just about seven months, the RBI does now not have a full-time deputy governor (DG) handling the supervision of banks, each state-run and personal, with the government failing to discover a alternative for S S Mundra who retired in July.
RBI has four deputy governors, together with one from the banking sector. While it has an economist in Viral Acharya, and B P Kanungo and N S Vishwanathan have risen through the ranks, the regulator does now not have a full-time head of the a very powerful division that oversees functioning of banks.
The role of the dep. of banking supervision, which also undertakes inspection, is under the scanner as RBI is seen to have failed in recognizing the alleged over Rs 11,300-crore fraud that had been occurring for over six years until it was once busted in January after being spotted by way of PNB.
The government had initiatied the method to appoint the fourth DG ahead of Mundra retired on July 30 but scrapped the panel of short-listed applicants who had been interviewed. In December, over four months after interviews had been carried out, the method was once restarted with the government but to shortlist a brand new set of applicants.
While several bankers are anticipated to compete for the job, many see SBI MD B Sriram, who was once in the race to go the rustic’s biggest bank, as a top contender. In the past, public sector bankers, typically CMDs, had been appointed DGs but final time, private sector and foreign bank executives had been also thought to be.
The division of banking supervision was once set up in 1993, after the Harshad Mehta rip-off where the RBI’s role had come under scrutiny.
RBI has four deputy governors, together with one from the banking sector. While it has an economist in Viral Acharya, and B P Kanungo and N S Vishwanathan have risen through the ranks, the regulator does now not have a full-time head of the a very powerful division that oversees functioning of banks.
The role of the dep. of banking supervision, which also undertakes inspection, is under the scanner as RBI is seen to have failed in recognizing the alleged over Rs 11,300-crore fraud that had been occurring for over six years until it was once busted in January after being spotted by way of PNB.
The government had initiatied the method to appoint the fourth DG ahead of Mundra retired on July 30 but scrapped the panel of short-listed applicants who had been interviewed. In December, over four months after interviews had been carried out, the method was once restarted with the government but to shortlist a brand new set of applicants.
While several bankers are anticipated to compete for the job, many see SBI MD B Sriram, who was once in the race to go the rustic’s biggest bank, as a top contender. In the past, public sector bankers, typically CMDs, had been appointed DGs but final time, private sector and foreign bank executives had been also thought to be.
The division of banking supervision was once set up in 1993, after the Harshad Mehta rip-off where the RBI’s role had come under scrutiny.
No RBI deputy governor to supervise banks for 7 months
![No RBI deputy governor to supervise banks for 7 months]()
Reviewed by Kailash
on
February 20, 2018
Rating:
