RBI Governor Urjit Patel/File Image
Reserve Bank of India (RBI) Governor Urjit Patel appeared before a parliamentary panel on Tuesday to brief on demonetisation and NPA situation in the public sector banks, among other issues, news agency PTI reported quoting its sources.
The RBI Governor reportedly committed to the parliamentary committee that he will submit written answers on some of the controversial issues.
According to PTI sources, Patel told the 31-member Parliamentary Standing Committee on Finance that the economy would get a boost from oil prices cooling off from four-year highs and said fundamentals were "robust."
Sharing details on noteban, he informed the Members of Parliament that credit growth was 15 per cent and the impact of November 2016 demonetisation has a transient impact on the economy.
Patel was earlier scheduled to appear before the panel on November 12.
According to PTI sources, Patel did not answer questions pertaining to contentious issues including the government invoking Section 7 of the RBI Act, NPAs, the autonomy of the central bank.
Sources said Patel made a presentation about the state of the economy as well about the world economy to the committee and several members asked questions. His views on the economy were "optimistic".
"He stayed clear of controversial questions like government invoking special powers, instead he gave intelligent replies without saying anything," they said.
Members also asked questions on the implementation of the Basel III capital adequacy norms for banks. To this, a source said the Governor replied that adherence to the global norms was India's commitment to G-20 nations.
Another source said that as there were a large number of questions, the Governor was asked to file written replies in 10-15 days.
The RBI Governor appeared before the panel days after the RBI's face-off with the finance ministry over issues ranging from the appropriate size of reserves to be maintained by the central bank to easing of lending norms for small and medium enterprises.
Former prime minister Manmohan Singh is also a member of the committee headed by senior Congress leader and former Union minister M Veerappa Moily.
India's banking system, particularly state-owned banks, are grappling with huge bad loans. Recently, there has been a liquidity crisis for the important NBFC sector following re-payment default by IL&FS.
(With PTI inputs)
