External Directors Of The RBI Question RBI Governor About How Fraud At PNB, PMC Bank, IL&FS Remained Undetected
[ By Bobby Anthony ]Two external directors of the Reserve Bank of India (RBI) questioned RBI Governor Shaktikanta Das at the RBI’s recent board meeting about how a string of frauds which have surfaced since 2018 remained undetected for years together.They pointed to losses suffered by Punjab National Bank (PNB) which financed absconding jeweler Nirav Modi and his uncle Mehul Choksi, as well...
Two external directors of the Reserve Bank of India (RBI) questioned RBI Governor Shaktikanta Das at the RBI’s recent board meeting about how a string of frauds which have surfaced since 2018 remained undetected for years together.
They pointed to losses suffered by Punjab National Bank (PNB) which financed absconding jeweler Nirav Modi and his uncle Mehul Choksi, as well as the IL&FS scam.
Das was also questioned about the recent failure of the Punjab & Maharashtra Co-operative (PMC) Bank which financed the defaulting real estate developer HDIL.
The RBI Governor was also asked about the stress faced by Yes Bank.
Incidentally, the external directors of the RBI have raised the issue at a time when the banking regulator has been facing flak on the social media, as well as criticism by depositors and financial market commentators.
Increasingly, questions have cropped up about the limitations as well as lack of efficacy of RBI’s inspection process and supervision mechanism.
It may be noted that the role of the RBI and auditors has come under intense scrutiny ever since IL&FS collapsed an year ago.