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Urjit Patel grilled by Parliamentary panel, seeks more powers for RBI (Lead)

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New Delhi, June 12 (IANS) RBI Governor Urjit Patel, who was on Tuesday grilled by parliamentarians over challenges being faced by the banking sector including the huge number and size of bad loans and frauds like the one in Punjab National Bank, sought more powers for the central bank to oversee Public Sector Banks (PSBs).

Patel, summoned by the Parliamentary Standing Committee on Finance for questioning in relation to these issues, said that the situation has improved and the Reserve Bank of India (RBI) has taken some measures to strengthen the banking system.

He appeared along with the Deputy Governors and deposed under the topic “Banking Sector in India issues, challenges and the way forward including Non-Performing Assets in banks and financial institutions”.

The meeting was chaired by Congress leader Veerappa Moily and attended by former Prime Minister Manmohan Singh among others.

Answering questions for over three hours, Patel said that the RBI “needs more powers to oversee PSBs”, sources present in the meeting said.

A source told IANS that Patel briefed about the current situation and said it has improved with regard to the issue of the Non-Performing Assets (or bad loans).

The central bank has taken some measures to strengthen the banking system, Patel said but pointed out that the RBI did not have “sufficient powers” to discipline Chairmen of banks or change members of their Boards.

During the meeting, sources said, the Governor faced tough questions from lawmakers on bad loans, bank frauds, cash crunch and other issues.

Some members of the committee also sought to know about the reasons for recent instances of ATMs running out of cash and NPA crisis and bank frauds (Nirav Modi).

Patel had earlier given a written submission about the corrective measures that have been taken.

Sources said that Patel informed that measures adopted by the RBI to tackle the crisis include prompt corrective action framework, implementation of Insolvency and Bankruptcy Code and a new resolution framework.

An MP said that Patel did not give any reply to some questions on demonetisation.

Citing reports of experts on the notes in circulation, which was earlier stated to be around Rs 17 lakh crore and has now increased to Rs 18.5 lakh crore, a member said that this was contradicting the purpose of demonetisation.

About the latest situation on the notes in circulation, Patel is reported to have said said that the RBI would give the answer later.

Another member said people have lost trust in the banking system and everybody is withdrawing cash while ATMs are depleted. “People are putting the money somewhere else which is going to be a run on the bank,” he is believed to have said.

In response, the RBI Governor said, “everything is fine”.

He was also asked about Punjab National Bank and told that LoUs were going from “Nirav Modi to Nirav Modi” which the banks are supposed to inspect.

Another member told the Governor that RBI was not fulfilling its obligations to the people to which Patel said he will reply to these questions later.

He also said the International Monetary Fund and World Bank have praised its regulatory role.

The next meeting of the committee will be held on June 19.

–IANS
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Dr. Abhishek Verma Dedicates a Shelter in Memory of His Mother, Veena Verma, at KGMU; Inaugurated by Daughter Nicolle Verma

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World-renowned business tycoon Dr. Abhishek Verma has supported Foodman Vishal Singh’s Hunger-Free World mission. In memory of his mother, Late Veena Verma, who was a 3 term Rajya Sabha MP.

Dr. Verma dedicated a state-of-the-art free permanent shelter for the attendants of patients at KGMU Medical University, Lucknow, under the aegis of Vijay Shree Foundation. His daughter, Nicolle Verma, inaugurated the shelter.

During the event, Foodman Vishal Singh honored Nicolle Verma by presenting her with a memento. Mrs. Nidhi Sharma and Avantika Yadav, associated with the organization, welcomed her with garlands. Following this, Nicolle Verma distributed essential items to the attendants and also handed out fruits. She became emotional remembering her grandmother on her birth anniversary.

On this occasion, she also inaugurated the “Veena Verma Sevalaya” in memory of her grandmother, Veena Verma, to serve the attendants. She expressed, “I feel proud that my family is engaged in nation-building as well as social service. Today, in collaboration with Vijay Shree Foundation founder Foodman Vishal Singh Ji, I feel immensely proud to dedicate this shelter for the poor, helpless, and needy attendants of patients battling serious illnesses like cancer. I am honored to be associated with the Hunger-Free World Mission for humanity.”

Inspired by the continuous humanitarian service provided by Vijay Shree Foundation over the past 17 years, Nicolle Verma donated 10 lakh rupees to support the cause. The purpose of this donation is to ensure that services continue for the needy attendants of patients suffering from severe illnesses in hospitals, as facilitated by Foodman Vishal Singh.

It is noteworthy that Dr. Abhishek Verma’s family has a legacy of public and philanthropic service. They are helping millions to carry forward the values and service work of their parents. On the occasion of his mother’s birth anniversary, Dr. Abhishek Verma dedicated this state-of-the-art permanent shelter at Lucknow Medical College to serve the attendants of patients through the Vijay Shree Foundation.

Supporting Foodman Vishal Singh’s Hunger-Free World mission, Dr. Abhishek Verma assured that he would continually support keeping this flame of humanity alive. He also promised to assist in providing medicines to the helpless patients.

Continuing her grandmother’s legacy of service, Nicolle Verma personally served food to the needy patients and attendants. She said, “It is our good fortune to have received the joy of doing this noble work today through Foodman Vishal Singh. I have taken another step forward in carrying my family’s values and cooperation by joining hands with the Vijay Shree Foundation. My father taught me to serve and help the needy, and I feel happy when I bring a smile to someone’s face.”

On the birth anniversary of the late Veena Verma, the event organizer, Vijay Shree Foundation founder Foodman Vishal Singh, said, “We feel proud and happy that Dr. Abhishek Verma, a globally renowned business tycoon, has extended his support to uplift our country from the hunger index. Today, on his mother’s birth anniversary, he inaugurated a state-of-the-art permanent shelter at Lucknow Medical College, which will always be helpful for the needy attendants of patients. It is a pleasure for me and the organization to receive the affection of Mr. Verma.”

The event was attended by General Manager Verma Family Office Hemant Garg, Sonu Rajput, and the organization’s volunteers, including Sandeep Singh, Parmeshwar Ji, Prashant Rao Gautam, Balram Singh, Ramesh Chaudhary, Suman, Jeetu, Anil, Suraj, Vinay, Manish Bhadauria, Manas Mehrotra, Vivek, Apurv, Happy, and others.

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