CVC sets up panel to examine bank fraud

New Delhi: Anti-corruption agency CVC has set up the Advisory Board for Banking Frauds, headed by former Vigilance Commissioner T M Bhasin, to examine bank frauds of over Rs 50 crore and recommend actions, in line with Finance Minister Nirmala Sitharaman's call for protecting honest decision making.

This development will instill a sense of protection among bankers from prosecution for genuine decisions, and promote lending. It will decide whether the case is a criminal act or a genuine commercial decision and accordingly, recommend the future course of action.

When asked about the move of the Central Vigilance Commission (CVC), Finance Secretary Rajiv Kumar said this will enable bankers to take genuine and commercially prudent decision without fear.

The panel in its previous avatar was called the 'Advisory Board on Bank, Commercial and Financial Frauds'.

The Advisory Board for Banking Frauds (ABBF), formed in consultation with the RBI, would function as the first level of examination of all large fraud cases before recommendations or references are made to the investigative agencies by the respective public sector banks (PSBs), CVC said in an order.

The four-member board's jurisdiction would be confined to those cases involving the level of officers of general manager and above in the PSB in case of allegation of fraud in a borrowal account, it said.

Lenders would refer all large fraud cases above Rs 50 crore to the board and on receipt of its recommendation or advice, the bank concerned would take further action in such matter, it said.

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