In the wake on the money laundering scams or forex frauds being unearthed by the Enforcement Directorate (ED) and other investigative agencies almost every other day, the Reserve Bank of India (RBI) governor Raghuram Rajan too expressed concerns on the matter. Speaking on the sidelines of a central nank board meeting held in Mizoram on Thursday, he said that the Bank of Baroda case does raise some questions over the fraud detection system that is in place right now.
He plans to put up some measures to prevent Bank of Baroda-like cases in the future.
On the issue of non-performing loans (NPLs), he said going forward, a closer look will have to taken at the asset quality of banks. "Hope banks will recognise all bad loans. Going ahead, I hope banks effectively put assets back on track after discussing with promoters."
Meanwhile, he also said that the RBI is working with the government to ensure fuller pass through of interest rate cuts.
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