CBI hosts the 4th Conference of CBI officers & Chief Vigilance Officers of Public Sector Banks & Financial Institutions


DIRECTOR CBI, SHRI AP SINGH SAYS A COMPREHENSIVE SYSTEM OF CHECKS & BALANCES IS REQUIRED TO CURB THE DISTURBING RISE IN BANK FRAUD CASES; ASKS BANKS TO COOPERATE WITH CBI TO AVOID SENDING A WRONG SIGNAL TO THOSE ENGAGED IN CORRUPT ACTIVITIES

 

Press Release

New Delhi , 07.08.2012

The 4th Annual Conference of CVOs of Public Sector Banks/Financial Institutions and CBI officers was held today at the CBI Headquarters, New Delhi.  The Director CBI, Senior CBI officials and Chief Vigilance Officers  of 30 Public Sector Banks/Financial Institutions participated. The theme for this Conference was ‘Preventing Bank Frauds with Systemic Intervention’.

 

            Delivering the keynote address, Director CBI, Shri Amar Pratap Singh said the increasing amount of frauds in the banking sector is a disturbing factor. He said while the banking sector had lost  Rs 2017 crore due to fraud in 2009-10, this has seen a quantum jump in 2010-11, with the loss amount rising to Rs.3799 crore. While the CBI’s Bank Securities & Fraud Cell registered criminal cases involving Rs.4000 crore in 2011, cases regarding frauds worth Rs 2500 crore have already been registered from January to July this year. Shri Singh pointed out that these figures clearly suggest that a better system of checks and balances is required to prevent such frauds. He said, existing loopholes need to be plugged, manuals updated and SOPs framed to ensure that lending & borrowing takes places in a healthy environment, free of fraud.

 

            Shri AP Singh said that CBI is  developing  a ‘Bank Case Information System’ (BCIS) which contains names of accused persons , borrowers and public servants on the records of the Bureau. This information may also be made accessible to field functionaries of the Banking Sector in collaboration with the Indian Bank Association (IBA), once
modalities are worked out.

 

            Shri A.P.Singh stated that on the request of CBI, the CVC has notified revised threshold limits for reporting bank fraud. CBI will now only register bank fraud cases involving loss of over Rs 3 crore. Frauds involving loss of below Rs 3 crore shall be reported to state police.

 

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            The Director, CBI asked the CVOs to sensitize their respective banks to accord Sanction for Prosecution of public servants promptly as undue delay sends a wrong signal to persons engaged in corrupt activities. He also observed that some banks report fraud to CBI with the objective to put pressure on borrowers to get their dues recovered, and thereafter show reluctance to cooperate with investigation. Stressing on the need for closer cooperation of the CBI with Public Sector Banks & Financial Institutions, Shri AP Singh said the CBI is sensitive to the crucial role being played by banks in the Indian economy, and clarified that the Bureau’s role is only to investigate criminality in bank frauds such as cheating, criminal conspiracy, forgery, concealment, abuse of official position etc. He said that CBI does not interfere in cases where commercial decisions involving risks has resulted in losses to the bank.

 

            The Conference discussed important issues relating to role of third parties in bank financing, complaints, investigation & RDA, Trial & Prosecution and Coordination. Systematic changes proposed by CBI to Public Sector Banks, Systematic  changes brought out by banks, common problems faced by CBI related to bank fraud cases and other miscellaneous issues, were also discussed.

 







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