CVC sets up panel to probe bank fraud

The Central Vigilance Commission (CVC) has constituted an Advisory Board for banking fauds (ABBF) to examine bank fraud of over ₹50 crore and recommend action.

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Why is it in the news?

  • The Central Vigilance Commission (CVC) has constituted an Advisory Board for banking fauds (ABBF) to examine bank fraud of over ₹50 crore and recommend action.
  • The board is headed by former Vigilance Commissioner T.M. Bhasin.

More in the news

  • The Advisory Board for banking fauds (ABBF) is formed in consultation with the RBI.
  • It 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).
  • Lenders would refer all large fraud cases above ₹50 crore to the board and on receipt of its recommendation or advice, the bank concerned would take further action in such matter.
  • The Central Bureau of Investigation may also refer any case or matter to the board where it has any issue or difficulty or in technical matters with the PSB concerned.
  • The tenure of the Chairman and members would be for a period of two years.

Source

The Hindu.