The government and the Reserve Bank of India should make sure that the Rs 13,000-crore PNB scam does not lead to a “fear psychosis” in the financial system which chills economic activity in the country, a prominent industry lobby has said.
Emergence of the scam should not lead to a “paralysis” and “fear psychosis”,
Rashesh Shah, the president of Ficci, told PTI here.
Shah, who also chairs the diversified financial services company Edelweiss, said he has written to both the RBI and the government with a request to ensure that the country does not slip into that zone.
On whether the emergence of the Punjab National Bank scam, allegedly involving diamond trader Nirav Modi, is a throwback to the latter part of the UPA-II regime, where the fear of the 3Cs CBI, CAG and CVC led to a chill in activity, Shah said, “We have to overcome the fear psychosis. Investigation should not result in fear psychosis.”