The Department of Financial Services (DFS) convened a ‘Coordination Meeting on Vigilance Matters of Public Sector Banks (PSBs)’ in New Delhi, focusing on enhancing inter-departmental cooperation and expediting investigations into bank fraud cases.
Key participants included Shri M. Nagaraju, Secretary, DFS; Shri Praveen Sood, Director, CBI; the Chairman of the Advisory Board for Banking and Financial Frauds (ABBFF); the Chairman of SBI; MDs and CEOs of PSBs; and Chief Vigilance Officers of PSBs. Representatives from the Ministry of Home Affairs (MHA), Department of Personnel and Training (DoPT), Reserve Bank of India (RBI), and Central Registry of Securitisation Asset Reconstruction and Security Interest (CERSAI) were also present.
The meeting underscored the importance of combating bank fraud, highlighting steps such as the Insolvency and Bankruptcy Code (IBC) and the establishment of the National Asset Reconstruction Company (NARCL) to improve asset quality and performance of PSBs.
Detailed discussions and presentations by DFS and CBI focused on operational measures to expedite fraud investigations. Key points included:
- The positive impact of amendments to the Prevention of Corruption Act, 1988, which safeguard bankers’ honest decisions.
- Creation of platforms for regular dialogue between bankers and CBI to enhance operational efficiency.
- Addressing challenges related to complaint filing, investigation review, and support for ongoing probes.
The PSB Alliance showcased an ‘asset tracing’ IT application designed to help banks track assets provided as loan collateral. The technology’s features were discussed, and PSBs were advised to independently assess its potential utility.
The meeting concluded with a shared commitment to strengthen vigilance, ensure timely prosecution of fraud, and reinforce trust in the banking system through collective efforts.
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