RBI Governor asks for more powers to oversee PSBs in view of bad loans

The Reserve Bank needs more powers to oversee Public Sector Banks (PSBs) amid bad loans in state-run lenders.

This was stated by RBI Governor Urjit Patel when he appeared before Parliamentary Standing Committee of Finance in New Delhi today.

During the meeting, sources said, the governor faced tough questions from lawmakers on bad loans, bank frauds, cash crunch and other issues.

Sources said, Mr Patel assured the members that steps are being taken to strengthen the system. He told the panel that the RBI has inadequate control over PSBs.

Mr. Patel also answered queries regarding the recent fraud allegedly committed by absconding jewellers Nirav Modi and his associates in the Punjab National Bank.

He told the panel that steps were being taken to strengthen the banking system. On NPA situation, Mr. Patel expressed confidence that the RBI will be able to tide over the crisis.