Officials of the Reserve Bank of India (RBI) have no role to play in the sanctioning and post-sanction monitoring of large-value loans by banks, the RBI said in an affidavit submitted before the Supreme Court on Monday calling the claims as “fallacious”.
RBI said, “Large value credit sanctions in banks are generally taken by a committee of the board/senior management of the bank. The sanctioning of such credit is committee-based and not an individual decision. RBI nominee director does not have veto power in the credit sanctioning process.”
The affidavit came in response to a public interest litigation (PIL) filed jointly by former union minister and member of Bharatiya Janata Party (BJP) Subramanian Swamy and advocate Satya Sabharwal questioning the failure of Central Bureau of Investigation (CBI) to probe the role of RBI officials for their acts of omission and commission in such scams.
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The RBI affidavit filed on Monday said, “Bringing any individual to justice, RBI official or otherwise, there needs to be prima facie evidence for the investigating agencies to examine their role. It is for the investigating agencies to conduct an investigation as per the laid down procedures and applicable law. Most of the scams referred to in the present PIL are already under investigation by the CBI and Enforcement Directorate (ED). It is not for the petitioners to direct the course of…
