FM TO SOON RESPOND TO RAI’S ALLEGATIONS

Finance Minister (FM) Arun Jaitley has met the Bank Boards Bureau (BBB) Chairman Vinod Rai on a number of occasions, and discussed the functioning of the BBB and banking reforms. The last meeting between the two happened on a weekend, earlier this month, at Jaitley’s residence, Business Standard has learnt. On Monday, the BBB had said the Centre had been sitting over its suggestions.

Finance Minister (FM) Arun Jaitley has met the Bank Boards Bureau (BBB) Chairman Vinod Rai on a number of occasions, and discussed the functioning of the BBB and banking reforms. The last meeting between the two happened on a weekend, earlier this month, at Jaitley’s residence, it is learnt.

On Monday, the BBB, in a 60-page report of its recommendations for reforms in state-owned banks, had said the Centre had been sitting over its suggestions. Rai alleged communication breakdown and said the finance ministry’s Department of Financial Services (DFS) has not responded to its counsel, and a meeting sought with Jaitley, on July 26, 2017, was still pending.

Senior government sources said this was not the case, and Jaitley is likely to respond to these allegations soon. “Since the date mentioned in the BBB report (July 26), the FM and the BBB chairman have met on a number of occasions, formally as well as informally. Banking reforms and the functioning of the BBB have been discussed between the two,” an official told Business Standard. The person said DFS Secretary Rajiv Kumar has also met Rai and other BBB members to discuss its proposals.

A second official confirmed that the DFS has responded to the BBB’s recommendations through formal channels. The BBB’s report, titled Compendium of recommendations was put in public domain 10 days before the tenure of all the BBB members was set to expire on March 31, highlighting the work done by the bureau in the last two years. In the report, Rai mentioned a communication breakdown between the National Democratic Alliance government and the BBB, which was set up in February 2016 under the former Comptroller and Auditor General to usher in governance reforms in public sector banks. Rai underlined extracts of a letter sent by him to Jaitley on July 26 to set out a framework on BBB’s role, seeking time for ameeting with the minister to discuss issues, one of which was need for “an organic relationship between the Centre and the bureau .”“The bureau continues to a wait a meeting ,” Raisaid in the footnote of the report.