In his report submitted the parliamentary panel headed by senior BJP leader Murli Manohar Joshi, Rajan had said that over-optimistic bankers, government foot-dragging and slow growth were factors resulting in the increasing bad loans.

“The RBI set up a fraud monitoring cell when I was Governor to coordinate the early reporting of fraud cases to the investigative agencies. I also sent a list of high-profile cases to the PMO urging that we coordinate action to bring in at least one or two to book. I am not aware of progress on this front. This is a matter that should be addressed with urgency,” said Rajan in his report.

Unfortunately, he said, the system had been “singularly ineffective” in bringing even a single high-profile fraudster to book. “As a result, fraud is not discouraged,” said Rajan.

Congress alleged that the former Reserve Bank of India governor had indicted the Prime Minister Narendra Modi and his office. “Why didn't the PM take action against these known defaulters? When we demitted office the NPA was ₹ 2.83 lakh crore. How much is bad loans today - it’s ₹12 lakh crores,” asked Surjewala.

Although Rajan had not mentioned any name in the letter, the Congress alleged that his list included name of Mehul Choksi and Nirav Modi.