Banks must closely monitor large-value cases of fraud: secy

The finance ministry on Thursday told banks that their top executives should monitor large-value cases of bank fraud more closely and that bona fide credit decisions should be shielded from investigations. The suggestion was made in a meeting held by financial services secretary Vivek Joshi to discuss the progress made in the investigation and resolution of large-value bank fraud cases.

In a statement, the finance ministry said the review meeting involved assessments from both the perspective of recovery and enforcement action. “All measures should be taken to further improve coordination between the Central Bureau of Investigation, or CBI, and banks for expeditious investigation,” it said, adding that large-value bank fraud cases may be monitored more closely by the chairmen, MDs and CEOs of banks for enforcement and recovery purposes. “Chief Vigilance Officers (CVOs) may actively participate in this review process,” it said, adding that all measures should be taken to further improve coordination between the CBI and banks for expeditious investigation. “Coordination meetings between CBI and banks in respect of large-value bank fraud cases can be organised on a periodic basis. CVOs may facilitate the organisation of such meetings,” the statement noted.