Objective of Janakiraman Committee

The Janakiraman Committee was a committee that was established in 1992 to investigate the irregularities evident in the market economy. The Janakiraman Committee was supposed to assist the RRA in its investigation into certain banks and financial institutions. The committee was to submit periodic reports to the RRA. The article discusses the various aspects of the Janakiraman Committee, their objectives, and the findings. It also discusses the establishment of the Janakiraman Committee 2021. The Janakiraman Committee RBI was connected to the RRA and was connected to the RBI. It was appointed by the RBI under the leadership of R. Janakiraman. 

Janakiraman Committee

The Janakiraman Committee discussed the irregularities in the marketplace. These irregularities were connected with Government securities. The market conditions led to certain developments in the repo operations that were severely hampering the banking process. Repos are money instruments that were for the short term and were used to balance the volatility in the rates of money in the market. This was done through central banks by injecting some liquidity into the market and absorbing excessive liquidity. The objective of the Janakiraman Committee was to address these problems in the money market and to provide quick and long-lasting recommendations for solving this situation. The objective of the Janakiraman Committee was to enforce a new paradigm for the regulation of repo operations in the Indian economic market. The Janakiraman Committee was supposed to assist the RRA in its investigation into certain banks and financial institutions. The committee was to submit periodic reports to the RRA.

The objective of Janakiraman Committee

The main objective of the Janakiraman Committee was to inquire about the market conditions prevailing at that time and to investigate securities transactions of financial institutions and banks. The RRA is the Regulatory Review Authority. The Janakiraman Committee was said to assist the RRA in its operations. The Janakiraman reports that were provided had unveiled big financial scams and fraudulent behaviour from many banks and financial institutions. It also found that funds were being diverted by some banks through purchases and subsidiaries that were being made, through ready-forward transactions, and brokers who were being directly financed by banks. Banks like State Bank of India, National Housing Bank, SBI Capital Market Ltd, UCO Bank, Bank of Karad Ltd, and PDO were scrutinized for their question role and mismatch of financial information. The objective of the Janakiraman Committee was therefore fulfilled and the findings were submitted to the RBI for a series of more scrutiny. Recommendations were made based on these findings. 

Janakiraman Committee RBI

The Janakiraman Committee was set up in 1992 shortly after the Goiporia committee in 1990. It was set up by the Reserve Bank of India. The Janakiraman Committee RBI worked closely with RRA and RBI to reveal the misuse of repo operations. The committee was to submit periodic reports to the RRA.

Janakiraman Committee 2021

The Janakiraman Committee had been in operation since 1992 and has been involved in investigating various securities transactions in financial institutions. After the creation of the RRA in 1999, the purpose of the Committee was broadened. The Janakiraman Committee 2021 was re-appointed along with RRA 2.0 to review regulatory prescriptions. This it will do internally. 

Conclusion 

The objective of the Janakiraman Committee to investigate securities transactions was carried out thoroughly by the Committee. It had also found that there were many foreign banks like Bank of America that were involved with the misuse of these repo operations.