Probe Agency Reconstitutes Advisory Board to Examine Role of Top Bank Officials in Frauds Worth Rs 50 Cr

The Central Vigilance Commission (CVC) has reconstituted an advisory board to examine the role of top bank officials in case of frauds amounting to over Rs 50 crore. All public sector banks and public financial institutions shall refer all the matters of frauds involving Rs 50 crore for advice before initiating a criminal investigation, according to a CVC order.

"The CBI may also refer any case or matter to the board where it has any issue or difficulty or in technical matters with the public sector banks and public financial institutions concerned," it said. The Advisory Board for Banking and Financial Frauds shall examine the role of officials or whole time directors in public sector banks and public financial institutions in case of frauds amounting to more than Rs 50 crore, the order said.

All public sector banks and financial institutions have been asked to ensure that the advice of the board "has been sought, received and made available, in case of frauds amounting to Rs 50 crore to the investigating agencies who may take advice into account while taking consequential action to initiate preliminary enquiry or investigation, said the order issued on Thursday. The board will ordinarily, within a month of receipt of the initial reference, tender its advice as may be requisitioned by the ministry/department/CVC or the investigating agency, it said.

It may also periodically carry out frauds analysis in the financial system and give inputs for any policy formulation related to the frauds to the Reserve Bank of India (RBI) and to the CVC, according to the order. The board, headed by former vigilance commissioner and the then Chairman and Managing Director (CMD) of Indian Bank T M Bhasin, has been reconstituted for two years, with effect from August 21 this year.

Former urban development secretary Madhusudan Prasad, former director general of Border Security Force D K Pathak and former MD of EXIM Bank are the members of the board. The chairman will be entitled to an honorarium of Rs 2 lakh and the members will get Rs 1.75 lakh per month, the order said.

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