The Hindu Business Line : Sponsor banks liable for RRBs' show: Minister

THE Lok Sabha was informed today that the Government was actively considering a legislation to check serious cases of frauds in the banking industry as the existing Serious Fraud Office is functioning under the Department of Company Affairs to deal with serious cases of financial irregularities of companies.

Responding to a spate of supplementaries on the main question raised by BJP member Mr Kailash Meghwal during the question hour, the Union Finance Minister, Mr P. Chidambaram, said that there was no gainsaying the fact that there were cases of corruption and there was a need for proper supervision and proper accountability by banks.

He said the Government had taken a number of measures to prevent corruption in the banking industry and banks had been directed to strengthen the vigilance machinery and introduce preventive and prohibitive measures.

RRBs: In response to a question on the performance of the regional rural banks (RRBs) raised by BJP members Mr Dushyant Singh and Mr Virendra Kumar, Mr Chidambaram said out of 197 RRBs functioning in the country, as much as 157 RRBs were running in profit with only 40 making losses.

"I am going to hold the sponsor banks solely responsible for the performance of the RRBs and you can turn around the loss making RRBs" through proper strategies, the Finance Minister said adding that there was no proposal to merge all RRBs to evolve a national regional rural bank.

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Sponsor banks liable for RRBs' show: Minister