New Delhi, July 26 (KNN) The government has clarified that the Reserve Bank of India (RBI) has enough powers under the Banking Regulation Act, 1949 which empowers it to deal with any situation arising in any bank, including state-run lenders, the Parliament was informed.

In a written reply to Parliament, the finance ministry has noted the powers that RBI enjoys under the Banking Regulation Act, 1949. It has also listed the powers that the RBI has with regard to nationalised lenders and the State Bank of India under the Banking Companies (Acquisition and Transfer of Undertakings) Acts of 1970 and 1980 (Bank Nationalisation Acts) and the State Bank of India Act, 1955.

“Further, the RBI maintains the central fraud registry and banks report all frauds, involving amount above Rs 1 lakh, to the RBI. In addition, the RBI’s master directions on frauds lay out guidelines on categorisation, reporting and review of frauds, along with norms for consequent provisioning,” the finance ministry said in reply to a question on whether the RBI has adequate powers to regulate state-run banks.

“Thus, powers of the RBI are wide-ranging and comprehensive to deal with various situations that may emerge in all banks, including public sector banks,” the ministry said.

The RBI has been demanding more powers to regulate state-run banks.

In its reply to a Parliamentary panel earlier this year, the RBI had said the banking regulation Act, 1949 is a legislation aimed at regulating and supervising banking companies.