Public money is 'extremely safe' in PSBs as govt fully backs state-owned banks: Piyush Goyal

Speaking to reporters after meeting heads of PSBs, Goyal said govt is open to the question of giving more powers to RBI for effectively regulating PSBs

Press Trust of India June 19, 2018 18:47:03 IST
Public money is 'extremely safe' in PSBs as govt fully backs state-owned banks: Piyush Goyal

New Delhi: Public money is "extremely safe" in state-owned banks, finance minister Piyush Goyal said on Tuesday against the backdrop of several cases of frauds, including the $2 billion scam at PNB, unearthed recently.

Speaking to reporters after meeting several heads of PSBs, he said the government is open to the question of giving more powers to the Reserve Bank for effectively regulating public sector banks.

"Public money is extremely safe in PSU banks. Government stands behind them 100 percent," Goyal said.

Public money is extremely safe in PSBs as govt fully backs stateowned banks Piyush Goyal

File image of Union minister Piyush Goyal. PTI

He stated however that he was not "sure" as to how safe the public money is with private companies which have huge income tax dues.

He said the frauds were perpetrated by private companies and not the PSBs.

In reference to recent suggestion by RBI Governor Urjit Patel that the central bank lacked powers to effectively deal with the PSBs, Goyal said RBI has powers, but if additional powers are needed the government was open to the idea.

He also said that PSBs would support credit needs of genuine companies, and focus on MSME sector.

Various investigating agencies are probing the over $2 billion fraud allegedly committed by diamond jeweller Nirav Modi and his associates.

Several other scams too have surfaced in the recent past involving PSBs.

Updated Date:

Find latest and upcoming tech gadgets online on Tech2 Gadgets. Get technology news, gadgets reviews & ratings. Popular gadgets including laptop, tablet and mobile specifications, features, prices, comparison.

also read

Yes Bank case: CBI books HDIL promoters Wadhawans, others for Rs 200-cr loan fraud
Business

Yes Bank case: CBI books HDIL promoters Wadhawans, others for Rs 200-cr loan fraud

It is alleged that loans taken for Mack Star were transferred to settle HDIL liabilities to Yes Bank without intimation to its majority stakeholder and investor ODIL in a conspiracy orchestrated by the HDIL promoters, directors and auditors

Centre to borrow up to Rs 1.1 lakh crore on behalf of states to meet GST shortfall
Business

Centre to borrow up to Rs 1.1 lakh crore on behalf of states to meet GST shortfall

The amount will be borrowed by the Centre under the Special Window in appropriate tranches and will be passed on to states in back-to back loans, said a finance ministry statement. However, it did not say who will service the interest and principal payments

RBI Assistant 2019 Main Examination to be held on 22 November; for exam centre change, other details check rbi.org.in
India

RBI Assistant 2019 Main Examination to be held on 22 November; for exam centre change, other details check rbi.org.in

The recruitment drive is carried out to fill 926 vacancies of Assistants in various offices of the RBI. Candidates who qualify the Mains examination will be called for a Language Proficiency Test