Disregard of systems, procedures behind high value bank frauds: CVC
New Delhi: A large number of high value bank frauds took place due to disregard of systems and procedures in lending as well as in general operation, the Central Vigilance Commission (CVC) has observed.
In view of this, the commission has advised chief vigilance officers (CVOs), who act as its distant arm to check corruption, to give priority to the prevention of fraud at every level through the use of technology and discreet inquiries.
It also noted that big frauds reported from overseas branches necessitate a thorough analysis of the nature of issues involved therein.
The matter came up during a sectoral review meeting of the banking sector held with the chairman and managing directors (CMDs) and the CVOs of the State Bank of India, Bank of India, Bank of Baroda, Central Bank of India, IDBI Bank, Union Bank of India, Bank of Maharashtra, United Bank of India, Allahabad Bank, UCO Bank, Bank of India, PNB and the RBI.
The CMDs and the CVOs of the banks made presentations to the commission, bringing out the status of vigilance cases, progress made in them, preventive vigilance measures undertaken by the banks, initiatives taken to strengthen the whistle-blower mechanism, activities undertaken during observance of vigilance awareness week the CVC said.
"Commission observed that a large number of high value frauds took place due to disregard of systems and procedures in lending as well as in general operation. Commission also noted that big frauds reported from overseas branches necessitates thorough analysis of the nature of issues involved therein," it said in its annual report 2020. The commission has also observed that in the committee approach for financing, the same officer is made member in different committees, it said.