Nagpur: In Revelation, the Bank of India (RBI) reserves have clarified that banks throughout the country witnessed the increase in fraud incidents due to their failure to comply with their directions issued from time to time.
In a written statement delivered to Nagpur Bench High Court Bombay, the APEX bank further revealed that it does not have the power to conduct an investigation in banking fraud, also does not have a machine to do so.
Affidavit was submitted when he heard Suo Motu’s voice for RS25 Crore losses caused by UCO Bank.
Rajnish Vyas has been appointed as Amicus curiae in pills.
Draftness has occurred because of alleged forgery carried out by a bank officer in Wardha’s branches and hingangphat.
The division bench consisting of Judge Vinay Deshpande and Amit Burbkar delayed six-week hearing.
Asked by advice RBI SN Kumar, Affidavit added that as a regulator of the banking system in this country, he issued a ‘master circular fraud’ to be sensitive to the bank and had a prevention system.
“Apart from the guidelines released from time to time, it was observed that frauds carried out in the bank showed an increasing trend, especially because of the non-compliance or implementation of circular direction published by us.
To allow the bank to have all current instructions in one place, a circular master combine All guidelines, instructions and directions about the subject were issued on August 1, 2001, “said Affidavit.
In addition, to allow the Indian government to need information about fraud, the appropriate reporting system is introduced.
Even though circular March 22, 2002, had prescribed the fraud reporting period, it was realized that banks did not follow carefully, the APEX bank said.
In the RBI Instance Governor, the Central Vigilance Commission (CVC) has formed a high-level group to study fraud incidents and suggest steps to prevent it.
“The group observed that the bank did not hold the time frame set by the RBI to report fraudulent cases.
It is recommended that the appropriate punishment must be made to the default bank.
Banks should report fraud in a week of their detection and then detailed reports need to be delivered in The format specified in the next three weeks, “said Affidavit.
Bank Top added that to minimize the incidence of fraud in the banking system, it has made sustainable efforts and regularly issued ambugs which directed the bank to start the appropriate action to hold it back.
“The banking regulation law does not empower the RBI to conduct investigations.
Actions can begin only after violations are established by law enforcement agencies.
This is mandatory for the Bank to submit a complaint of fraud with the police,” Kumar said.
Fraud on the increase because the bank failed to follow direction; There is no power to investigate: RBI to HC
