Dr Vivek Joshi, Secretary, Department of Financial Services (DFS), Ministry of Finance, chaired meeting today to review fraud cases of banking sector. The meeting was attended by senior officers of Central Bureau of Investigation (CBI), Chief Vigilance Officers (CVOs) of Public Sector Banks (PSBs) and Financial Institutions (FIs), and officers from DFS.

 

 

During the review meeting the progress made in investigation and resolution of large value fraud cases was comprehensively assessed. The review meeting involved assessment from both, the perspective of recovery and enforcement action.

During the review meeting, it was emphasised that all measures should be taken to further improve coordination between CBI and banks for expeditious investigation. And towards this objective, suggestions were also invited for making systematic improvements.

Following issues were discussed during the meeting:

• Large value bank fraud cases may be monitored by Chairman/MD & CEO of banks more closely from enforcement and recovery purposes. Chief Vigilance Officers (CVOs) may actively participate in this review process.
• Coordination meetings between CBI and banks in respect of large value bank fraud cases can be organised on periodical basis. CVOs may facilitate organisation of such meetings. Purpose of the meeting should be to ensure better coordination between complainant and law enforcement agency i.e. CBI.
• Need to protect bonafide credit decisions from investigation was discussed. It was suggested that training sessions may be organised for CVOs / ‘officials involved in credit decisions’ to avoid common lapses that lead to investigation. It was suggested that CVOs may take a lead in organisation of such programmes. That may take necessary help from CBI, as required.  A manual or guidance note may also be prepared to avoid lapses. 
• It was suggested that use of digital technology may be made in sharing of documents needed for investigation with CBI. Statutory changes as needed to be examined in facilitation of this.

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NB/VM/KMN

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