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CVC seeks data on fraud from banks

PTI | New Delhi |

Anti-corruption watchdog CVC has sought details of all fraud reported to the CBI since 2001 by public sector banks to analyse the modus operandi followed by fraudsters, Vigilance Commissioner T M Bhasin said.

The exercise is part of a first-of-its-kind initiative being undertaken by the Central Vigilance Commission aimed at bringing in systematic improvements in the banking system to prevent fraud.

“Now what we have done is that we got the information collected from the Reserve Bank of India (RBI) on cases of fraud. They have submitted to us the information with regard to top 111 accounts,” he said.

Bhasin, former chairman and managing director of Indian Bank, said the Commission has also asked all banks to provide information on all the cases of fraud involving Rs 3 crore and more.

“Right since 2001, whatever fraud has been reported to the CBI, Rs 3 crore and above, all those information is being collected. We have talked to chief vigilance officers of the public sector banks. They have been asked to submit the data by November 15,” he told PTI.

The vigilance commissioner said the information will then be analysed to find out the common modus operandi used in various types of fraud.

“And then we will take up with the RBI also as to how systematic improvements are required to be made,” he said.

As many as 1,806 cases of major fraud would be studied by the Commission as part of this exercise, he said.

Various banks reported 4,851 cases of fraud involving about Rs 23,902 crore during 2016-17, according to a reply given by the finance ministry in Parliament in July.

At present, all banks are reporting fraud cases to RBI through Fraud Monitoring Returns (FMR) based on the fraud reporting and monitoring system supplied to them.

The modus operandi followed in fraud cases is sent by banks to the Indian Banks’ Association which then circulates it in a physical form.

The CVC plans to put details of commonly-followed modus operandi on a portal to be developed specifically for this purpose.

“In times to come, it will be ensured that there is a common database or data pool is available to the bankers where various types of modus operandi are available. We plan to host a website for this purpose alone,” Bhasin said.