Which of the following committee has been constituted by the Reserve Bank of India to look into bank frauds?
Last updated May 15, 2026
Correct Answer:
Option C —
YH.Malegam Committee
In 2018, the Reserve Bank of India (RBI) constituted an expert committee under the chairmanship of Y.H. Malegam, a former member of the Central Board of Directors of the RBI. The committee was specifically tasked with looking into the rising instances of bank frauds and the classification of Non-Performing Assets (NPAs).
Background and Purpose (UPSC Economy Perspective)
The committee was formed in the wake of several high-profile banking scams (notably the PNB-Nirav Modi case) to address systemic gaps in the Indian banking sector. Its primary objectives included:
Monitoring the divergence in NPA (Non-Performing Asset) estimation.
Identifying the causes of the increasing trend in bank frauds.
Suggesting measures to improve the audit process and internal checks within banks to prevent such occurrences.
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