Next parliamentary panel meeting on finance to be held on June 19

Mumbai: The Parliament's next standing committee meeting on finance is scheduled for June 19. The standing committee meeting is likely to discuss ways to tackle the growing menace of chit fund agencies around the country.

The meeting will also include an RBI representative in presence. Earlier today, the Reserve Bank of India (RBI) Governor Urjit Patel appeared before the parliamentary panel on finance.

The panel today was led by Congress Party leader Veerappa Moily, summoned Patel to discuss various issues including the amount of cash returned post demonetisation. As per sources, the RBI Governor was to appear before the Committee on May 17 in the wake of recent banking scams and the issue of non-performing assets (NPAs).

In March, Patel had stated that it was not possible for any banking regulator to catch or prevent all frauds after banking scams surfaced which showed the involvement of state and private lenders such as Punjab National Bank (PNB), ICICI Bank, and so on.

Furthermore, Patel noted that the RBI had issued precise instructions via three circulars in 2016 to all banks to eliminate such hazards, but Punjab National Bank (PNB) failed to follow instructions. He also said that it is essential for banking regulatory powers to be ownership neutral.

In case of private banks, Patel said the real deterrence arises from the market and regulatory discipline.