CVC seeks mechanism to check misconduct by banks' top brass

The Central Vigilance Commission (CVC) has sought a mechanism to look into rising cases of misconduct and instances of fraud by top officials of public sector banks.
The CVC has written to the Department of Financial Services in this regard.
"The Commission, taking into account the rising misconduct and instances of frauds and irregular decisions pertaining to the Chairman and Managing Directors (CMDs) and Executive Directors of public sector banks, was of the considered view that there is a need for having a specific deterrent mechanism for initiation of disciplinary action against Whole Time Directors (WTDs) while in service and continuation of the same after completion of their tenure in office and demission of office," it said.

It has advised Financial Services Department to provide adequate provisions in the pension scheme for WTDs enabling initiation of punitive action within four years of demission of office or completion of tenure, the Commission said in its annual report tabled in Parliament recently.
It cited a provision regarding board-level appointments in Central Public Sector Enterprises (CPSEs).
The CVC has noted that the appointment of board-level officers in the CPSEs are of contractual nature and that the standard terms and conditions of their appointments provide for initiation of disciplinary proceedings against CMD and Functional Directors, while in service and also for continuation of the same after completion of their term of office.

"However, in the CPSEs, a pension scheme where a monthly pension is paid akin to the scheme for public sector bank employees or WTDs is not in place," the probity watchdog has said.