Just a couple of days old in his new post as the RBI Governor, Urjit Patel will address the Public Accounts Committee of Parliament. On Thursday, Patel will answer questions from PAC members on a CAG report on public debt management.

The report, tabled during the monsoon session, had said that the existing legal framework does not define the term ‘Public Debt’. Urging the Centre and the RBI to create a strong legal framework, the report also said that the existing framework does not indicate the objectives of public debt and borrowing purpose, and also does not require the formulation of a debt management strategy.

“There are a number of issues the RBI must address regarding public debt management. The RBI Governor’s presence in the meeting will be helpful for the members to get a perspective of the regulators,” a member in the panel said.

Patel’s predecessor Raghuram Rajan had also appeared before the panel some days ago, but on a different issue. Rajan talked to the members on his pet theme, the non-performing assets of public sector banks.

The CAG report had said that at present, debt management is governed by the Constitution of India and various primary and secondary legislations like the RBI Act, Public Debt Act, FRBM Act, FRBM Rules and Government Securities Act. The total outstanding public debt of India as on March 31, 2015 was ₹51,04,675 crore, of which ₹47,38,291 crore (92.82 per cent) was internal debt and ₹3,66,384 crore (7.18 per cent) was external debt.

“A legal framework, consisting of both primary and the secondary legislation, may include the definition of public debt, debt management objectives, borrowing purposes and requirement of debt management strategy,” the report had noted.

The panel, the source said, plans to submit the report during the winter session of Parliament. “We will also complete the proceedings on NPAs very soon. Rajan has told us in detail about the issues the RBI and other banks are facing in managing the NPAs,” the member added.

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