NEW DELHI: Former Minister and one-time firebrand trade unionist George Fernandes demanded the resignation of Reserve Bank of India (RBI) Governor SVenkitaraman since “the RBI had failed in its supervisory role over the banking system as shown recent Bombay stock scandal.
Fernandes was addressing a dhama organized by the Hind Mazdoor Kisan Panchayat in front of the offices of the Reserve Bank.
The Panchayat demanded that action be taken against all the ministers and officers involved in the scandal and tight control be maintained over the activities of foreign banks.
The RBI had virtually no shock over the activities of its subsidiary National Housing Bank which is very much involved in the stock scandal” Fernandes remarked.
In his down-to-earth style Fernandes explained “NHB is like the little son of RBI And if the Governor cannot control the activities of various sections of the bank he is not fit for the job He is just like a cashier who counts 500 currencies less all the time.
“Shady dealings of some parties in misusing the public’s money can lead to the collapse of the entire banking system” Fernandes said.
He added that the Department of Economic Affairs got all information on the stock market in reports filed every 15 days Moreover last August GV Ramakrishna (former Additional Secretary) had submitted a detailed report on Bombay Stock the Go d knew what was happening all along” Fernandes said.
“Big bulls small bulls and bulls are now control in country’s economy” Fen said questioning the who tem of stock exchanges goes people play in stock win or lose” Fernandes:
Article extracted from this publication >> June 26, 1992
