RBI Governor Urjit Patel seeks more powers to effectively regulate public sector banks

Regarding PSBs, Patel told the panel that RBI has "inadequate" control over them and asked for more powers to regulate them. RBI has cited at least 10 areas where it has no control over PSBs. These include, power to remove chairman, director or CEO of a state-owned banks and impose restriction on common directors on PSB boards. There are 21 state-owned banks, including State Bank of India.

RBI Governor Urjit Patel seeks more powers to
RBI Governor Urjit Patel today made a strong case for more powers to effectively regulate public sector banks (PSBs) as lawmakers asked him tough questions over increasing bad loans and frauds. Image source: Reuters

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