CVC seeks details of frauds from banks to devise preventive mechanism

CVC said the exercise to collect and analyse data is to find out what kind of frauds are happening in the banks

The probity watchdog CVC has asked banks to give details of any fraud worth over Rs 30 million to devise a preventive mechanism.

Because this data is originally lying with respective banks and RBI. We felt if we know what kind of frauds are happening and their reasons could be analysed, then some preventive steps can be taken (to check them), Central Vigilance Commissioner K V Chowdary told PTI.

Underscoring the need for a detailed research on the subject, which CVC has initiated, he said the exercise to collect and analyse data is to find out what kind of frauds are happening in the banks.

So we have started to collect data. We have got some portion of data. The remaining data is yet to come. We have analysed, I think about 100 cases and have tried to see whether they fall into a particular pattern, Chowdary said.

His assertion assumes importance amid cases of large scale frauds reported in government-owned Punjab National Bank (PNB) and UCO Bank.

As part of the preventive mechanism, the Commission has been insisting on rotational transfer of bank employees working on sensitive posts, the chief of probity watchdog said.

If the person cannot be shifted from one place to another, he may be shifted at least within the same place or from one branch to another or at least within the branch from one seat to another, he said.

Chowdary said there should be defined timelines for all the works done by banks to check frauds or any other irregularities.

He said the preventive vigilance mechanism in banks has to be strengthened.

The guidelines and operating procedures has to be strengthened. It has to be ensured that they are followed, Chowdary said.

He said there is a need for a more effective audit mechanism in banks to check any irregularities.