In the backdrop of high-profile Punjab National Bank Fraud, Reserve Bank of India has become not less than a scapegoat, facing flak from almost every section of the society. After receiving atrocious condemnation, RBI Governor Urjit Patel, finally, broke his mystifying silence and his first statement in the aftermath of the fraud was startling.
RBI Governor publicly described that how RBI has been emasculated and does not enjoy the rights to stop any banking fraud resulting into such high level banking loots. Urjit Patel’s statement points towards a grave situation of Indian Banking System. It points out the fact that how government in the name of bank reform is stripping central bank off its rights and enslaving commercial banks. With this, disagreements between the Government and central bank have come to the fore.
Precisely, RBI is intending to bring about the significant reforms and put some restrictions on the banks as it has done by putting an end to issue of LoUs by the Indian banks- though it will hurt other sincere and honest business men-but RBI’s style of reforms may not fit in the shoes of government.
RBI Governor publicly described that how RBI has been emasculated and does not enjoy the rights to stop any banking fraud resulting into such high level banking loots. Urjit Patel’s statement points towards a grave situation of Indian Banking System. It points out the fact that how government in the name of bank reform is stripping central bank off its rights and enslaving commercial banks. With this, disagreements between the Government and central bank have come to the fore.
Precisely, RBI is intending to bring about the significant reforms and put some restrictions on the banks as it has done by putting an end to issue of LoUs by the Indian banks- though it will hurt other sincere and honest business men-but RBI’s style of reforms may not fit in the shoes of government.
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