In view of large divergences observed in asset classification and provisioning in the credit portfolio of banks as well as the rising incidence of frauds in the Indian banking system, RBI decided to constitute an Expert Committee under the chairmanship of Shri Y H Malegam, a former member of the Central Board of Directors of RBI, to look into the reasons for high divergence observed in asset classification and provisioning by banks vis-à-vis the RBI’s supervisory assessment, and the steps needed to prevent it; factors leading to an increasing incidence of frauds in banks and the measures (including IT interventions) needed to curb and prevent it; and the role and effectiveness of various types of audits conducted in banks in mitigating the incidence of such divergence and frauds.
The committee comprises of :
Chairman: Shri Y H Malegam, a former member of the Central Board of Directors of RBI
(1) Shri Bharat Doshi, Member, Central Board of Directors, RBI;
(2) Shri S Raman, former Chairman and Managing Director, Canara Bank and former Whole-Time Member, SEBI;
(3) Shri Nandkumar Saravade, Chief Executive Officer, Reserve Bank Information Technology Pvt Ltd (ReBIT). (4) Shri A K Misra, Executive Director, RBI will be the Member-Secretary of the committee.