According to HT reports, in an affidavit submitted before the apex court RBI said its officials have no role to play in the sanctioning and post-sanction monitoring of large-value loans by banks.
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 scams.
RBI further 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.”