Finance Ministry holds a review meeting on large value fraud cases

Financial Services Secretary in the Finance Ministry, Vivek Joshi, on Thursday chaired a meeting to review progress made in the investigation and resolution of large value fraud cases in the banking sector.

The meeting was attended by senior officers of the Central Bureau of Investigation (CBI), Chief Vigilance Officers (CVOs) of Public Sector Banks (PSBs) and Financial Institutions (FIs), and officers from the Department of Financial Services (DFS).

During the review meeting, it was emphasised that all measures should be taken to further improve coordination between the CBI and banks for expeditious investigation.

“Large value bank fraud cases may be monitored by the Chairman/MD & CEO of banks more closely for enforcement and recovery purposes. Coordination meetings between the CBI and banks in respect of large value bank fraud cases can be organised on a periodic basis. The purpose of the meeting should be to ensure better coordination between the complainant and law enforcement agency, i.e., the CBI,” the Finance Ministry said in a statement listing the issues discussed in the meeting.

The Finance Ministry said the need to protect bona fide credit decisions from investigation was discussed. “It was suggested that training sessions may be organised for CVOs / ‘officials involved in credit decisions’ to avoid common lapses that lead to investigation. A manual or guidance note may also be prepared to avoid lapses,” the statement said.

It was suggested in the meeting that the use of digital technology may be made in sharing documents needed for investigation with the CBI. “Statutory changes as needed to be examined in facilitation of this,” the Finance Ministry said.