CBI quizzes ex-RBI deputy governor in PNB probe: Source

- Reuters, NEW DELHI

Apr 8, 2018-

The Central Bureau of Investigation questioned a former senior central bank official on Friday about a gold import scheme as part of inquiries into a $2 billion fraud at state-run Punjab National Bank, a source familiar with the discussions said. The source told Reuters that officers from the federal police had been seeking background information from former Reserve Bank of India (RBI) Deputy Governor H.R. Khan on the “80:20 scheme” and that it was “not a grilling exercise”. In 2013, the RBI and the previous government implemented the 80:20 rule to help rein in a spiralling current account deficit, forcing importers to export at least 20 percent of the gold that they brought into the country.

The restrictions were later eased as the deficit narrowed and the scarcity of gold hit India’s jewellery exports. Khan, who retired from his post at the RBI in 2016, declined a Reuters request for comment. However, the source said: “The Central Bureau of Investigation wanted to understand the background of the 80:20 scheme, why it was relaxed and on what basis trading houses were chosen to import gold.”

Published: 08-04-2018 14:36

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