Banks to report frauds of Rs one crore and above to CVC
NEW DELHI : Central Vigilance Commission (CVC) has asked the Banks to report to it any suspected fraud cases of one crore rupees and above.
Vigilance Commissioner TM Bhasin said in New Delhi that CVC has now made it mandatory for the public sector banks to share their reports relating to all loan frauds involving funds over Rs one crore. Till now this report was shared with the RBI only.
He said the banks will also now have to report the modus operandi of all the alleged frauds to the CVC which will share these details with other banks to prevent such cases being repeated. The Commission will also call regular monthly meetings of senior officials of Reserve Bank of India (RBI), CBI and banks to monitor probe in suspected bank frauds of 50 crore rupees and above.
According to CBI data, in 2015, the agency had probed 171 cases of bank frauds involving funds of 20,646 crore rupees. In addition, CBI is also investigating the Ponzi schemes involving funds of over 1.20 lakh crore rupees.
