PNB Fraud Painful, Willing To Face Brickbats To Clean System: Urjit Patel

Urjit Patel launches an indirect broadside against the government.

Feeling anger and pain over the recent Rs 13,000 crore alleged Punjab National Bank (PNB) fraud, Reserve Bank of India (RBI) said on Wednesday that it is determined to clean the banking space even if it faces brickbats. Governor Urjit Patel also defended RBI’s role in the matter saying that the central bank has “very limited authority” over state-run banks, which are majority-owned by the government. This has, in effect, led to a system of “dual regulation”, said Mr Patel, adding that this “fault line is bound to lead to tremors such as the most recent fraud”. He was speaking at a university in Gujarat.