The Reserve Bank of India regulates all banks and sets into motion guidelines which must be followed by all banks, regardless of their origin or working. Just like the rule of the law, any institution must enforce its diktats to be effective. It is in this regard, the #rbi has failed miserably and the outcome is there for all to see —The #pnb scam.

Companies have bribed their way to withdraw tax payer’s money from banks and erring Bank officials are not scared of being caught or prosecuted. So who is afraid of RBI?

Crafty and wily companies along with conniving middle-level bank officials managed to plunder the Bank’s wealth with impunity and without any fear.

User Log-ins, passwords were provided to #nirav modi’s company and no one was afraid of any repercussions.

Experts are unable to comprehend how the loot which started in 2011, went on unhindered, without a whiff of suspicion, even in the audits conducted under the watchful eyes of RBI. Worse - the RBI’s response was found wanting after the fraud was revealed - a case of operational risk precipitated by aberrant behavior by one or more employees of the bank and failure of internal controls.

Yes, it was a failure of PNB’s internal controls but what caused it to fail in such magnitude and spectacular fashion? Were the Bank officials incompetent or willing conspirators in carrying out the swindle?

RBI needs someone like TN Sheshan

The Election Commission was a non-performing entity before a bureaucrat called TN Sheshan came and the erring political parties started mending their ways. Today the institution of Election Commission has been strengthened and allowed to function autonomously and without any prejudice. Something similar must be done in the working of RBI.