NEW DELHI: The Reserve Bank of India (RBI) has good enough powers to keep watch over and supervise banks, the finance ministry informed lawmakers after the regulator stated it was constrained in its skill to oversee state-owned lenders.
“The powers of RBI are wide-ranging and complete to take care of more than a few eventualities that may emerge in all banks,” including lenders the place the federal government owns a majority stake, junior finance minister Shiv Pratap Shukla stated in a written answer in Parliament on Tuesday.
RBI Governor Urjit Patel in March cited executive ownership of some Indian banks as an impediment to overseeing lenders hit via frauds and bad loans. The disclosure of the country’s biggest bank fraud in February uncovered the federal government in addition to the central bank to criticism for failing to check irregularities within the banking gadget.
The central bank derives its powers to keep watch over and supervise banks from the Banking Regulation Act and other rules, Shukla stated responding to a query on whether or not the RBI lacked good enough powers to keep watch over state-owned banks and if that was the explanation “a variety of scams” in state-run banks may just now not be avoided.
“The powers of RBI are wide-ranging and complete to take care of more than a few eventualities that may emerge in all banks,” including lenders the place the federal government owns a majority stake, junior finance minister Shiv Pratap Shukla stated in a written answer in Parliament on Tuesday.
RBI Governor Urjit Patel in March cited executive ownership of some Indian banks as an impediment to overseeing lenders hit via frauds and bad loans. The disclosure of the country’s biggest bank fraud in February uncovered the federal government in addition to the central bank to criticism for failing to check irregularities within the banking gadget.
The central bank derives its powers to keep watch over and supervise banks from the Banking Regulation Act and other rules, Shukla stated responding to a query on whether or not the RBI lacked good enough powers to keep watch over state-owned banks and if that was the explanation “a variety of scams” in state-run banks may just now not be avoided.
Government rebuffs RBI's claim it needs more powers to regulate banks
![Government rebuffs RBI's claim it needs more powers to regulate banks]()
Reviewed by Kailash
on
July 26, 2018
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