NEW DELHI: Expressing deep concern over the fraud detected in PNB, a Parliamentary panel has said that the supervisory and regulatory roles of the board of the financial institution and the RBI must be checked out.
Parliament’s standing committee on finance, which submitted its report to each Houses of Parliament on Friday, additionally advised the finance ministry to take corrective measures and produce rules to plug loopholes and be sure that such incidents don't take place.
The panel said, “In this kind of situation of regulatory failure, the current re-capitalisation workout of banks may end up as throwing ‘just right money after bad’.”
Last month, finance minister Arun Jaitley had slammed regulators, together with financial institution managements and auditors, for his or her failure to stumble on frauds, announcing “politicians are responsible but regulators are not” — a remark interpreted as signalling the government’s displeasure over the RBI’s failure to scream fraud in the Rs 12,600-crore PNB case.
While urging the government to instil self belief of customers and traders in the credibility of state-run banks, the panel additionally said there is a want to “rub apart the cry to privatise PSBs”. It additionally said the time has come to make sure scrutiny of large loans in the cooperative sector.
Parliament’s standing committee on finance, which submitted its report to each Houses of Parliament on Friday, additionally advised the finance ministry to take corrective measures and produce rules to plug loopholes and be sure that such incidents don't take place.
The panel said, “In this kind of situation of regulatory failure, the current re-capitalisation workout of banks may end up as throwing ‘just right money after bad’.”
Last month, finance minister Arun Jaitley had slammed regulators, together with financial institution managements and auditors, for his or her failure to stumble on frauds, announcing “politicians are responsible but regulators are not” — a remark interpreted as signalling the government’s displeasure over the RBI’s failure to scream fraud in the Rs 12,600-crore PNB case.
While urging the government to instil self belief of customers and traders in the credibility of state-run banks, the panel additionally said there is a want to “rub apart the cry to privatise PSBs”. It additionally said the time has come to make sure scrutiny of large loans in the cooperative sector.
Look at roles of PNB board, RBI: Parl panel
![Look at roles of PNB board, RBI: Parl panel]()
Reviewed by Kailash
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March 11, 2018
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