Central Vigilance Commission reviews 100 top bank frauds till 2017

It said that a final report has been sent to the Department of Financial Services (DFS) and RBI "in order to plug the loopholes" observed by the Commission.

The Central Vigilance Commission (CVC) has reviewed "100 top bank frauds" committed till 2017 and has submitted a report to the Reserve Bank of India (RBI), complete with information on how the frauds were executed and counter-measures the banks can employ to avoid them.

These bank frauds were done by companies belonging to 13 sectors, categorised by the Commission into Gems and Jewellery, Manufacturing, Agro sector, Media, Aviation, Service Sector, Discounting of cheques and bills, Trading sector, IT Sector, Exports sector, Fixed deposits and Demand Loan etc.

In a statement issued by the government on Tuesday, the CVC Vigilance Commissioner T. M. Bhasin was quoted as saying that these frauds are being investigated by "premier investigative agencies", which are also trying to fix accountability and recovery of the funds loaned.

Bhasin said that as a conscious decision and with a view to maintaining discreteness, the names of borrower accounts/entities and the names of the banks have not been disclosed in the report, the statement from Ministry of Personnel, Public Grievances & Pensions said.

"However, steps are being taken for all-encompassing actions such as the investigation by the premier investigative agencies, fixing staff accountability and recovery measures, etc for effective action," it quoted Bhasin.

It said that a final report has been sent to the Department of Financial Services (DFS) and RBI "in order to plug the loopholes" observed by the Commission.

A copy of the Analysis of 'Top 100 Bank Frauds' by CVC has been uploaded on the CVC website.

(With inputs from agencies.)