Shaktikanta Das faces board heat on RBI's inability to detect financial frauds
The external directors raising the issue comes at a time when the RBI is facing a lot of flak over its inspection and oversight mechanism efficiency.
- Oct 16, 2019,
- Updated Oct 16, 2019 11:02 AM IST
Reserve Bank of India (RBI) Governor Shaktikanta Das came under duress at the apex banks' board meet last week, as two external directors questioned the apex bank as to how a series of scams that came to light since 2018 remained unnoticed. The two directors cited the Punjab National Bank (PNB) fraud, the IL&FS scam and the very recent Punjab & Maharashtra Co-operative (PMC) Bank case.
"These incidents differ from each other and are not exactly related, but a few members were quite vocal about it. The governor explained the information-sharing system and collection of data by the RBI. In some cases, the data itself - even the audited numbers - were either inadequate or fudged," a source told the Economic Times. The source in the know of the proceedings added: "Perhaps, it wasn't an entirely fair question, but it was apparent that the RBI officials felt awkward. Maybe it was not expected."
The pressure faced by Yes Bank also came about during the RBI's board meet. The external directors raising the issue comes at a time when the RBI is facing a lot of flak over its inspection and oversight mechanism efficiency.
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Reserve Bank of India (RBI) Governor Shaktikanta Das came under duress at the apex banks' board meet last week, as two external directors questioned the apex bank as to how a series of scams that came to light since 2018 remained unnoticed. The two directors cited the Punjab National Bank (PNB) fraud, the IL&FS scam and the very recent Punjab & Maharashtra Co-operative (PMC) Bank case.
"These incidents differ from each other and are not exactly related, but a few members were quite vocal about it. The governor explained the information-sharing system and collection of data by the RBI. In some cases, the data itself - even the audited numbers - were either inadequate or fudged," a source told the Economic Times. The source in the know of the proceedings added: "Perhaps, it wasn't an entirely fair question, but it was apparent that the RBI officials felt awkward. Maybe it was not expected."
The pressure faced by Yes Bank also came about during the RBI's board meet. The external directors raising the issue comes at a time when the RBI is facing a lot of flak over its inspection and oversight mechanism efficiency.
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