ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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HUMAN RIGHTS-Pleasing Aid-Givers

supervision of banks". In this context he announced the decision to set up a separate Board for Financial Supervision wivhin the Reserve Bank.
It is interesting to note that the finance minister, who at the outset considered the irregularities in the banks' enormous advances to stock market brokers a mere aberration over which he did not intend to lose any sleep, has at last recognised that it revealed weaknesses in the existing system of supervision of banks. But to say that the scam revealed weaknesses only in the system of supervision of banks is to grossly underplay its enormity. One cannot help observing, therefore, that the belated recognition on the part of the finance minister is not wholehearted; in fact the scam is being used to pursue the so-called financial sector reforms that have little bearing on the loopholes in the existing banking system which permitted the sort of massive fraud that was perpetrated by banks, particularly the foreign banks, in collusion with some stockbrokers.

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