Letter to BS: RBI governor Urjit Patel slams govt for limited power

This is with reference to “Patel slams govt for limited power” (March 15). The dilemma facing the Reserve Bank of India (RBI) ever since nationalisation of major banks has been voiced by none other than the present governor of the RBI himself. Public sector banks, which after the nationalisation in 1969, account for some 80 per cent of banking resources of the country have since then been confronting two bosses, the RBI and the finance ministry. The RBI though entrusted with regulation of the entire system has often yield to the wishes of the ministry in case of banks where the latter is the owner. The problem created by this dual control has come to the forefront some weeks ago with the Punjab National Bank scam. Driven to the wall, the governor, Dr Urjit Patel  has found no alternative but to state the obvious “regulatory power must be ownership neutral.” It is time that his demand is adhered to.

R C Mody,  New Delhi

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