PSU banks told to be ‘vigilant’, settle cases in 90 days | business | Hindustan Times
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PSU banks told to be ‘vigilant’, settle cases in 90 days

business Updated: Jun 16, 2015 00:11 IST
Mahua Venkatesh
Mahua Venkatesh
Hindustan Times
PSU banks

As many as 400 cases related to various public sector banks are pending before the anti-graft body Central Vigilance Commission (CVC).

The CVC has directed all central vigilance officers (CVOs) of the banks to settle at least 75% of the cases within the next 45 days, and the remaining within three months.

“These cases have been pending and we have asked the respective CVOs and banks to settle these cases at the earliest,” T M Bhasin, who was appointed vigilance commissioner earlier this month, told HT.

Bhasin, former chairman of Indian Banks’ Association and Indian Bank, said CVOs engaged with state-owned banks have also been asked to devise early warning systems, including prevention and detection, to reduce the number of frauds.

“We have to understand the main reasons of the frauds so that we can contain them at an early stage,” Bhasin said.

The CVC will not allow delays in granting vigilance clearance to government officials for their promotion and empanelments, he added.

Government banks incurred a loss of over `11,000 crore in 2014-15 due to frauds, an increase from `7,542 crore in 2013-14, RBI said.

According to the RBI, “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” is considered a fraud.