Press Release
New Delhi, 17.07.2015

         Shri Jayant Sinha, Union Minister of State for Finance today inaugurated the 6th conference of Chief Vigilance Officers of Public Sector Banks & Financial Institutions at CBI HQ and delivered the keynote address Director, CBI Shri Anil Sinha also addressed the inaugural session.


         In his Key note address to senior CBI officers and Chief Vigilance Officers of Banks and Financial Institutions, MoS(Finance) termed the frauds in financial sector as a “lethal parasite” to economy of the nation”and urged the banks & financial institution to follow the RBI prescribed frame work relating to prevention, early detection and timely initiation of staff accountability while ensuring that the normal conduct of business of banks & their risk taking ability is not adversely imparted. Shri Jayant Sinha underlined the importance of creating a database which the lenders can access to get all the details of previous frauds reported by banks. The Central Fraud Registry being prepared by RBI, the MoS said, will be a centralised searchable database which can be accessed by banks. He also mentioned that CBI & Central Economic Intelligence Bureau (CEIB) have also expressed interest in sharing their own databases with the banks.


         In his welcome address, Director CBI Shri Anil Sinha said the Sixth Conference has been organised in the backdrop of a rather serious scenario vis a vis bank frauds. The period from 2009-2014 saw a sharp increase in bad loans and advances leading to an alarming rise in non-performing assets (NPAs) across the banking sector. As per the RBI Handbook of Statistics on Indian Economy, the NPAs have grown from around Rupees 45,000 crores in 2009, to more than 2 Lakh 22 thousand crores in 2014. Even in percentage terms, the NPAs have grown from 2% of gross advances in 2009 to more than 3.8% of gross advances in 2014. The CBI Director stressed for strong action with surgical precision in bank fraud cases. He said that as a consequence of the robust framework being laid down by the government for timely detection, reporting and investigation of bank fraud cases, the number of bank fraud cases, including big-ticket frauds getting registered with the CBI is expected to see a substantial increase in coming times. He also spoke of the increased responsibility on the CVOs of banks to ensure that the complaints filed with CBI are comprehensive and contain a full disclosure of all facts so that the investigations can be concluded expeditiously and the wrong-doers are brought to justice swiftly. Shri Anil Sinha apprised the august gathering, that CBI is also in the process of setting up a Centralised Technology Vertical to support investigations in areas of cyber forensics, mobile forensics and forensic fraud examination.


         Dr. Hasmukh Adhia, Secretary, Department of Financial Services addressed the Valedictory Session this evening.


         The topics under discussion in this day long Conference included; Coordination between banks and different agencies in tracking funds diverted by fraudsters; news framework for dealing with loan frauds – way forward; issues relating to big frauds in accounts involving consortium: Role of technology in prevention of frauds, Initiatives taken by the banks to tackle high ticket frauds.


         The Conference was addressed by officers and financial experts from the RBI and Public Sector Banks. Sessions were moderated by the Special Director of CBI and other senior officers.


         The Conference was attended by senior officers of CBI’s Bank Securities & Fraud Cell, Economic Offences & Anti Corruption Divisions; Managing Director of SBBJ; Joint CP, EOW, Mumbai and Joint CP, EOW, Kolkata.


         The Public Sector Banks which participated in the Conference include Reserve Bank of India; Allahabad Bank; Andhra Bank, Bank of Baroda; B Bank of India; Bank of Maharashtra; Canara Bank; Central Bank of India; Corporation Bank; Dena Bank; EXIM Bank; Indian Bank; IDBI Ltd., Indian Overseas Bank; Oriental Bank of Commerce; NABARD; National Housing Bank; Punjab & Sind Bank; SIDBI; SBBJ; State Bank of Hyderabad; State Bank of India; State Bank of Mysore; State Bank of Patiala; State Bank of Travancore; Syndicate Bank; UCO Bank; Union Bank of India; United Bank of India; SEBI and Joint Secretary/CVO of Department of Financial Services and others.