New Delhi: Central Wative Commission (CVC) has changed the rules for the mandate that all bank fraud cases than RS 3 Crore will be referred to the expert panel to decide whether an investigation by the Investigation Bureau (CBI) guaranteed in what is seen as a new attempt to entertain bankers .
Previously, only cases of fraud from more than Rs 50 Crore at the Public Sector Bank were referred to this panel.
Separately, bankers have approached the Ministry of Finance looking for “sunset periods” for investigations so that they are not hunted by probe institutions for original business decisions.
They have suggested that agency, such as CBI and CVC, must be prohibited from looking into cases if the loan account remains standard for seven or 10 years.
“There may be a problem because the situation that applies in certain economies or industries, or the company’s products can be obsolete during the period (time).
But if there are no problems for a certain amount of a number of certain years, there is no need to go hunting magicians, some of them occur After retirement, “said a banker.
While the Financial Services Department (DFS) has not acted on this, it, along with RBI and CVC, has agreed to tweak the rules in fraud cases.
This step occurs when bankers have increased new concerns over what they believe in dividing by three cs – CVC, CBI and Kortroller and Auditor General of India – on several occasions.
In the past, they had quoted this concern to become slow in sanctions loans, although Prime Minister Narendra Modi and Finance Minister Nirmala Sitharaman had repeatedly offered full support for the original business decisions.
In a round released last week, CVC said that based on discussions with RBI and the Ministry of Finance, the Advisory Board for Banking and Financial Fraud (ABBF) would examine the role of all executives and all time directors (serving and retirees) in cases from RS 3 -50 Crore is classified as a fraud by public sector banks managed by the government and financial institutions on or after January 6 report before the January 6 deadline will be referred to the panel if they have achieved disciplinary authorities or where criminal cases are not submitted.
While CVC has said that a separate board for cases between RS 3 Crore and RS 50 Crore will be established, Bankers say that there is a need to have a quick decision because the number of cases called ABBF will now increase several times.
In the past, the bank had responded by classifying a large number of cases as fraud to ensure that management did not face action later.