RBI has wide-ranging powers to deal with banks, says govt
: The Reserve Bank of India (RBI) has “wide-ranging and comprehensive” powers to address various situations in banks, the government said on Tuesday against the backdrop of RBI governor seeking greater say in dealing with bad loans of public sector banks (PSBs).
Listing out RBI’s powers to deal with banks, minister of state for finance Shiv Pratap Shukla said the central bank can inspect the lenders, examine on oath any officer, direct special audit and give directions to banks.
Also, whole-time directors of nationalized banks and State Bank of India are appointed in consultation with the RBI, he said in a written reply in the Rajya Sabha.
“...the powers of RBI are wideranging and comprehensive to deal with various situations that may emerge in all banks, including public sector banks,” he said.
RBI governor Urjit Patel in his presentation before the Parliamentary Standing Committee on Finance had last week pitched for more powers saying that the central bank has “inadequate” control over state-owned lenders.
Replying to another question on whether less money was being put in ATMs after the demonetization, Shukla replied in negative.
RBI has informed that the total amount of Notes in Circulation (NIC) as on July 18, 2018 was ₹19.28 lakh crore as compared to ₹17.74 lakh crore as on November 4, 2016, he said.
NEW DELHI