The CBI questioned former deputy governor of the Reserve Bank, H R Khan, in connection with alleged bank fraud cases involving diamond traders Nirav Modi and Mehul Choksi and relaxation of gold import policy by the erstwhile UPA government, reports said today.
Reports claimed he was questioned about the UPA government's 20:80 gold import scheme, which was cleared by then Finance Minister Chidambaram on May 13, 2014, barely three days before the counting of votes of the general election.
The central investigation agency, which is probing the alleged Rs 13,000-crore PNB fraud involving billionaire diamantaire Nirav Modi and his uncle Mehul Choksi, had yesterday questioned three Chief General Managers and one General Manager of RBI.
PNB has said it is working with investigative agencies and regulators in the probe, in which authorities have so far arrested 20 people including executives from the state-run bank. The RBI has faced criticism that it failed to detect the long-running fraud, or correct a breakdown of normal practices at the nation's second-largest state-run bank. The regulator, however, has argued that it had "very limited authority" over state-run banks and called for reforms to give the RBI more powers to police such lenders.
In a strongly worded speech last month, RBI Governor Urjit Patel said there were numerous limitations in the RBI's powers over state-run lenders, such as its inability to remove directors, or replace management.
Reports claimed he was questioned about the UPA government's 20:80 gold import scheme, which was cleared by then Finance Minister Chidambaram on May 13, 2014, barely three days before the counting of votes of the general election.
The central investigation agency, which is probing the alleged Rs 13,000-crore PNB fraud involving billionaire diamantaire Nirav Modi and his uncle Mehul Choksi, had yesterday questioned three Chief General Managers and one General Manager of RBI.
PNB has said it is working with investigative agencies and regulators in the probe, in which authorities have so far arrested 20 people including executives from the state-run bank. The RBI has faced criticism that it failed to detect the long-running fraud, or correct a breakdown of normal practices at the nation's second-largest state-run bank. The regulator, however, has argued that it had "very limited authority" over state-run banks and called for reforms to give the RBI more powers to police such lenders.
In a strongly worded speech last month, RBI Governor Urjit Patel said there were numerous limitations in the RBI's powers over state-run lenders, such as its inability to remove directors, or replace management.