Former RBI Governor Raghuram Rajan upset with government’s move to curb bad loans

Former RBI governor Raghuram Rajan is upset with the government’s move to curb the bad loans in Banks as he said that despite of sending a list of high profile fraud cases to the PMO, he is not aware of any progress on it.

Raghuram Rajan said that the main reason behind the slow growth of mounting the bad loans were the overoptimistic bankers and government’s foot dragging in the case.

In his report Rajan said that the RBI has set up a panel to report the cases of fraud in the banks as a result of which a list of high profile fraudster is prepared and sent to the PMO urging for the action but he was not aware with the progress.

Raghuram Rajan Said, “The RBI set up a fraud monitoring cell when I was governor to coordinate the early reporting of fraud cases to the investigation agencies”.

“I also sent a list of high profile cases to the PMO urging that we coordinate action to bring in at least one or two to book. I am not aware of progress on this front. This is a matter that should be addressed with urgency”, he added further.

However, the congress did not miss this chance to take on government for Raghuram Rajan’s allegations and tweeted about the case accusing the MODI government.

They said, “Former RBI Governor Raghuram Rajan in 2016 sent a list of runaway defaulters to the PMO, yet the PM Modi took no action”.

Union Textile Minister Smirti Irani called the report as loud proclamation of UPA government as according to Rajan’s report, more case were erupted during the congress rule in 2006 and 2011.

During that time, the economic growth was strong and all the infrastructure projects like power plants were completed on time and within budget. Raghuram Rajan is the RBI governor for three years till September 2016 and was succeeded by Urjit Patel.

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