Ex-CVC Patel to head board to examine role of top bank officials in frauds

Former Central Vigilance Commissioner (CVC) Suresh N Patel has been appointed the chairman of an advisory board to examine the role of top bank officials in fraud cases.

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; David Rasquinha, ex-MD of the EXIM Bank; and Partha Pratim Sengupta, ex-MD and CEO of the Indian Overseas Bank, according to an official order.

The tenure of the chairman and members would be for a period of two years with effect from August 21, 2023, said the order issued by the Central Vigilance Commission.

The Advisory Board for Banking and Financial Frauds (ABBFF) will 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, it said.

"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", said the order dated August 18.

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

The board can also give inputs for policy formulation related to frauds to the Reserve Bank of India and the Central Vigilance Commission, it stated.

The ABBFF will ordinarily, within a month of receipt of initial reference, tender its advice as may be requisitioned by ministries, departments, the Central Vigilance Commission or the CBI, the order stated.