The Governor of Reserve Bank of India (RBI) Urjit Patel, speaking about the recent Punjab National Bank (PNB) bank fraud, said that central bank wouldn’t mind consuming ‘poison’ like Neelakantha to clean the system. Speaking further about the much talked about Rs 12,967 crore PNB scam that involves businessman Nirav Modi, Patel broke his silence by saying the RBI doesn’t mind facing brickbats. The system would become stronger and better with each passing day.
Patel, while addressing students at the Gujarat National Law University, also expressed his displeasure by saying that the RBI has a limited authority under the banking acts. According to a report in Business Standard, Patel said, “We at Reserve Bank also feel anger, hurt and pain at banking sector frauds and irregularities. Banking frauds amount to looting of our country’s future by some in the business community in cahoots with some lenders.”
He added that the RBI has an ‘asset quality review’ of banks and they are doing every possible thing to break the ‘unholy nexus.’