Advisory Board for Banking and Financial Frauds reconstituted for 2 year

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Advisory Board for Banking and Financial Frauds, a panel to examine role of top bank officials or financial institutions in fraud cases, has been reconstituted for two years, with ex-CVC Suresh N Patel designated as its chairman.

ABBFF, which functions as a 'Safety Valve' for bankers, has been reconstituted for two years with effect from August 21, 2025.

The members of the board are Ravikant, a former secretary of the Department of Ex-Servicemen Welfare; Rajni Kant Mishra, a former director general of the Border Security Force; Alok Kumar Choudhary ex-MD of State Bank of India and Sarada Kumar Hota, former MD of National Housing Bank, a notification said.

As per the terms of appointment, the chairman and members of ABBFF are eligible for re-appointment, subject to the condition that the total period of appointment as chairman and/or member should not exceed 4 years or 70 years of age, whichever is earlier, said the notification dated August 19.

The board has been mandated to examine the role of all levels of officials and whole-time directors (including ex-officials and ex-whole-time directors) in public sector banks, public sector insurance companies and public sector financial institutions in case of frauds amounting to Rs 3 crore and above.

"All public sector banks, public sector insurance companies and public sector financial institutions shall refer all matters of frauds, involving sums of money of Rs 3 crore and above to the board... for advice before initiation of criminal investigation and the competent authority shall consider the advice tendered by ABBFF regarding involvement of criminality/malafide of the officials, in all such cases," the notification noted.

It said that "all public sector banks, and public-sector financial institutions shall ensure that the advice of the board has been sought, received and made available in case of frauds amounting to Rs 3 crore and above to the investigating agencies, who may take the advice of the board into account while taking consequential actions in such cases".

The Central Vigilance Commission or Central Bureau of Investigation (CBI) can also refer any case or technical matter to the board for its advice, the order stated.

ABBFF may also periodically carry out fraud analysis in the financial system and give inputs, if any, for policy formulation related to the frauds, to the RBI and CVC, it said.

The advisory board may ordinarily, within a month of receipt of the initial reference, tender its advice as may be requisitioned by the ministry/department/CVC or the investigating agency (including the Delhi Special Police Establishment), it added.

ABBFF should keep the Central Vigilance Commission and RBI informed about its performance and activities on a quarterly basis, it said.

In case a member of ABBFF is associated as a non-executive independent on the Boards of other entities, then he/she should not be involved with any proposal where these entities are part of proposals placed before ABBFF.