CVC releases list of top 100 bank frauds

NEWDELHI: The Central Vigilance Commission (CVC) on Tuesday released a first-of-its-kind analysis of the top 100 banking frauds and said it had shared its findings with the Reserve Bank of India (RBI) and department of financial services to plug loopholes observed by the Commission.

Vigilance Commissioner TM Bhasin said the commission divided the study into 13 sectors, which included the agro industry, media, gems and jewellery, manufacturing and aviation. The study was conducted as a preventive vigilance measure and used a cut-off date of March 31, 2017 for determining top 100 banking frauds.

The CVC avoided naming the banks are borrowers.“however, steps are being taken for all-encompassing actions such as investigation by the premier investigative agencies, fixing staff accountability and (loan) recovery measures etc for effective action,” said Bhasin.

The study focused on the methods used by fraudsters, and the loopholes noticed by the CVC, and suggested systematic improvements to avoid such frauds. “The measures suggested include strengthening of Standard Operating Procedures, monitoring system and also highlighting the role of controlling offices, so as examine the aspect of quality of business,” added Bhasin.

The report has also been shared with the ministry corporate affairs. “The Vigilance Commission has done its job and now as a follow-up action, banks and the banking regulator should ensure that suggested systematic improvements are incorporated in the functioning,” said NR Wasan, former chief of the Bureau of Police Research and Development.

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