RBI governor questioned on financial frauds

RBI Governor Shaktikanta Das has recently been questioned by the two external directors for unnoticing a series of scams that came to light since 2018. Shaktikanta Das was questioned on the Punjab National Bank (PNB) fraud, the IL&FS scam and the very recent Punjab & Maharashtra Co-operative (PMC) Bank case.

A source said, “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.”

The source 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 external directors mentioned that the issue comes at a time when the RBI is facing a lot of flak over its inspection and oversight mechanism efficiency.