Housing scam accounts under RBI scanner

Housing scam accounts under RBI scanner

Kolkata: The Reserve Bank of India (RBI) on Thursday said that it was going into the details of the accounts involved in the housing finance scam unearthed recently by the Central Bureau of Investigation (CBI).

“RBI has studied the accounts after getting information from the banks concerned," apex bank governor D.Subbarao said.

He said that out of 14 accounts involved, 13 were found to be of standard nature. The other account was in default, but due to reasons unconnected with the scam.

“All established norms were followed and there was no deviation," he said. He, however, said that the department of banking under the supervision of RBI was going into further details.

Recently, CBI unearthed a housing finance scam involving Bank of India, Central Bank of India and Punjab National Bank.

‘High oil prices worrying’

RBI deputy governor Subir Gokarn said high oil prices were as a worrying factor against the backdrop of a sluggish world economy.

“High oil prices is a source of concern," he said. He told reporters after the bank’s central board meeting here that it would pose a challenge and make inflation management more difficult.

The Euro zone crisis was also a source of persistent worry, Gokarn said.