Former RBI(Reserve Bank of India) Governor Raghuram Rajan submitted a report to the Parliamentary Committee that he had sent a list of high profile Fraud Cases to the Prime Minister’s Office in the country but they did not know what action was taken against him. In his report, Rajan has said that the enthusiasm of the bank officials, the sluggishness in the decision-making process of the government and the softening of the economic growth rate are the main reasons for the increased debt.
Apart from this, he said in a note given to the Parliamentary Committee Chairman Murli Manohar Joshi: “The decision-making process in both the UPA and NDA governments has been delayed due to various issues related to the Rajkaz, such as the possibility of investigation with the allocation of coal mines. “In his report, Rajan said that cases of fraud in public sector banks are increasing day by day.
Rajan told the Parliamentary Committee, “When I was the governor, the RBI had created a department of fraud monitoring so that the fraud case could be provided to the investigation agency. I then sent a list of High Profile Fraud Case to the PMO and asked for a coordination for the arrest of either one or two scamsters. I do not know what progress has been made about that. It is a matter which should have been promptly acted. “Rajan said that unfortunately, no arrest of any of the big scandals could have led to such a reduction in such cases. Explain that Rajan was the Governor of RBI from September 2013 to September 2016.
On the report of Rajan, Congress has targeted Prime Minister Narendra Modi and has asked the Prime Minister to explain why the PMO did not take action against those identified defaulters? Congress spokesman Randeep Singh Surjewala alleged that the NPA in 2014 was 2.83 lakh crore during UPA government which has increased to Rs. 12 lakh crore in the Modi government. However, Rajan has also stated in his report that a large number of banks’ debt or NPA increased from 2006 to 2008 when the country’s economic growth rate was very high.
Rajan said that this was the time when the banks made mistakes. He guessed the future on the basis of back growth and performance and provided a big debt to the projects, while the promoters had less equity in them. Rajan said that many times banks have signed contracts based on the report of the promoter’s investor bank to lend and did not investigate the entire investigation on their behalf.