The Comptroller & Auditor General (CAG) may start scrutinising the public sector banks that have received financial aid from the government. A knowledgeable official said the government auditor is at present working on internal guidelines to decide on the term of the audit, the process to be followed, etc. In the last five years, the Finance Ministry has infused over ₹85,000 crore (2011-16) in PSU banks.
“The audit will essentially look at whether the money given by the government (Finance Ministry) to these banks as part of recapitalisation has been utilised correctly. Since it is government money, the CAG is within its rights to audit it. Besides, it also forms part of auditing the Finance Ministry’s accounts,” a senior government official told a financial newspaper.
The CAG proposes to complete the audit and submit its report during the 2017 Monsoon Session of Parliament.