PSU bank heads to be accountable even after retirement | business | Hindustan Times
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PSU bank heads to be accountable even after retirement

business Updated: Jul 14, 2015 23:37 IST
Mahua Venkatesh
Mahua Venkatesh
Hindustan Times
PSU banks

The Central Vigilance Commission (CVC) is working on a mechanism by which chairpersons retired or in service of any state-owned bank would be held accountable for frauds or discrepancies till a period of four years since the date of the fraud.

Several discrepancies especially in government banks have come to fore in the last few months. The move is expected to bring in more accountability and reduce the instances of frauds.

“Currently, we are working out a mechanism by which a chairman who is still serving or has retired can be questioned for a fraud that comes to notice within four years of the time of that taking place,” a member of the CVC told Hindustan Times.

The issue is being looked at and would be formalised soon.

The CVC was also looking into ways that could expedite the closure of cases. Besides, it is trying to put in place a mechanism by which agencies such as the central bureau of investigation (CBI) and enforcement directorate (ED) could enhance their co-ordination and facilitate the same.

According to Reserve Bank of India a fraud is defined as a deliberate act of omission or commission by any person, carried out in the course of a banking transaction or in the books of accounts maintained manually or under computer system in banks, resulting into wrongful gain to any person for a temporary period or otherwise, with or without any monetary loss to the bank.