Parliamentary panel summons officials over loan denial to BJP MP's relative

The Parliamentary Committee on Finance has taken action to address concerns surrounding the denial of a loan to a family member of BJP MP Radha Mohan Singh. The central government and Reserve Bank of India (RBI) officials have been summoned to provide explanations in this matter.

During the committee's proceedings, officials from the Department of Financial Services and the RBI faced rigorous questioning pertaining to the loan policy for politically exposed individuals and those with political affiliations.

The issue at hand was brought to the committee's attention following a complaint by BJP MP Radha Mohan Singh. Several committee members, including Manish Tewari, supported this complaint.

Singh alleged that a well-known NBFC had initially granted a loan to some of his family members but later revoked it due to their political associations and relationship with a parliamentarian.

This incident raised significant concern among many MPs, who expressed their frustration and dissatisfaction during the meeting. Jayant Sinha, the committee's chairman, went on record to highlight the ambiguity in the application of due diligence for "Politically Exposed Persons" (PEPs).

He emphasised the need for the government and regulatory bodies, including the Department of Financial Services, the Revenue Department, and the RBI, to develop a clear and unambiguous policy for handling such cases.

Consequently, these officials have been summoned to appear before the committee on October 30. The committee expects them to present a comprehensive proposal for a transparent and well-defined policy regarding the application of PEP regulations, ensuring that ambiguity is eliminated from the process.