"One notice was issued 10 days back. Section 8 of Banking Regulation Act define how do you remove the director. We have initiated action for that (removal) also. So this is a clear message that we have to be responsible for what we do. We will only take action when we have substantive proof and not on hearsay," he said.
The government, he said, has taken a strict action which reflects its resolve to ensure the highest corporate governance in state-owned banks.
The department will not spare anyone involved in corruption and lapses, irrespective of his or her position and will take speedy action against them while honest officers have nothing to fear about, he said, adding the government would solidly stand behind honest officers.
When asked about action against two MDs named in the FIR related to loans given to Aircel by IDBI Bank, he said, "I would like to make it clear that you cannot take action only on hearsay.
They are responsible person and its only a few who are into this kind of thing otherwise by and large bankers have contributed to the economic growth of the country."
The problem is generally in the large corporate side, while branches across the country by and large are corruption free, he said.
Last month, the Central Bureau of Investigation (CBI) booked Syndicate Bank MD and CEO Melwyn Rego, who was Deputy Managing Director of IDBI, along with several others in the Rs 600 crore IDBI loan default case.
The CBI has also booked former IDBI CMD Kishor Kharat, at present MD and CEO of Indian Bank, in the loan fraud case.
Expressing faith in the banking system, Kumar said banks have a strong, robust tradition and they follow highest standard of corporate governance barring few stray cases.
"The moment I have definitive information either from the regulation side, supervision side or investigation side, the government will not hesitate in taking action to protect people's trust in the banking system," he said.
Citing various steps taken in the last few years to cleanse banking system, Kumar said the process for appointment of director have been changed since 2015 giving importance to merit and integrity.
Besides, the government has initiated whole lot of reform including improvement in asset quality, shoring up capital etc.