The Central Vigilance Commission (CVC) has formed an Advisory Board for Banking Frauds (ABBF).

Composition of the Advisory Board for Banking Frauds:

The ABBF will be headed by former Vigilance Commissioner T M Bhasin. The purpose of this board will be to examine bank fraud over ₹ 50 crore and recommend action. Other members of the panel are Madhusudan Prasad – former Urban Development Secretary, D K Pathak – former Director-General of the Border Security Force and Suresh N Patel – former MD and CEO of Andhra Bank. The tenure of the Chairman and members would be for two years from August 21, 2019

Functions of the ABBF:

  • The ABBF, formed in consultation with the RBI, would function as the first level of examination of all large fraud cases before recommendations or references are made to the investigative agencies by the respective public sector banks (PSBs)
  • The jurisdiction of the board would be confined to those cases involving the level of officers of General Manager and above in the PSB in respect of an allegation of fraud in a borrowal account.
  • Lenders would refer all large fraud cases above Rs 50 crore to the board and on receipt of its recommendation or advice, the bank concerned would take further action in such matter. The Board will also look into the matter referred by the Central Bureau of Investigation (CBI) where the CBI has any issue or difficulty or in technical matters with the PSB concerned.
  • The board will also periodically carry out frauds analysis in the financial system and give inputs for policy formulation related to the fraud to the RBI.

The Reserve Bank of India will provide required secretarial services, logistic and analytical support along with the necessary funding to the board.

About Central Vigilance Commission:

Central Vigilance Commission or CVC is an apex Indian governmental body which was formed to address governmental corruption. It was created in February 1964 In 2003, the Parliament enacted a law conferring statutory status on the CVC.

Headquarters of CVC : New Delhi

First Head: Nittoor Srinivasa Rau

Current Head: K. V. Chowdary

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