Finance Minister Arun Jaitley on Sunday said he does not see any need to tweak existing policies to address the issue of increased incidents of frauds in the banking system.

Replying to a query on the systemic risks faced by the Indian banking system from incidents such as the recent arrest of Syndicate Bank CMD SK Jain, Jaitley said it (Syndicate Bank) was not a policy issue, but was “a clear contravention of law”.

“It (Syndicate Bank) is a matter of criminal law investigation and the Department of Financial Services is already taking action. Now, it is for the Central Bureau of Investigation to look into it further,” Jaitley told reporters after addressing a meeting of the Central Board of the RBI here.

He also said Government was not averse to introducing stringent steps to protect the interests of depositors.

When asked about the weakening asset quality in the banking system, Jaitley said part of the reason for increased non-performing assets could be the slowdown in the Indian economy in the last two years.

Indian economy recorded sub-5 per cent growth in the last two years amidst an environment of runaway inflation, which has hovered around the two-digit level.

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