NPA accounts above Rs 50 Cr to be probed for fraud

In the wake of the recent crackdown on bank fraud cases, Rajeev Kumar, Secretary in the Department of Financial Services on Tuesday informed that all the Non-performing asset (NPA) accounts above Rs 50 crore will be examined for fraud.

Taking to his twitter handle, Kumar said the Public Sector Bank (PSB) MDs have been directed to detect bank frauds and consequential willful default in time.

"PSB (public sector bank) MDs directed to detect bank frauds & consequential wilful default in time & refer cases to CBI. To examine all NPA accounts > Rs. 50Cr for possible fraud. Involve ED/DRI for PMLA/FEMA/EXIM violations if any (sic)," Kumar Tweeted.

Earlier in the day, Kumar gave a 15-day deadline to the PSBs to take "pre-emptive" action for identifying gaps and to gear up to combat the rising operational and technical risks.

He also asked the Public Sector Units to sync themselves with the constantly developing technology.

"A 15-day deadline for PSB's to take pre-emptive action and identify gaps to gear up for (the) rising operational (and) technological risks, to learn from best practices and pinpoint strategies including tech solutions and to clear accountability of senior functionaries," he tweeted.

As a large number of bank frauds including that of Punjab National Bank and the Oriental Bank of Commerce are coming into the limelight, there has now been an increasing demand for the privatisation of the Public Sector Banks.

Previously, in the wake of the PNB scam, the Central Vigilance Commission on February 19 issued an advisory to all the public sector banks ordering them to transfer the officers who have completed three years as on December 31, 2017.