With a view to protect prudent commercial decision of bankers, the government
With a view to protect prudent commercial decision of bankers, the government has taken a slew of decisions, including doing away with personal responsibilities of MD and CEO of PSBs for compliance in dealing with large value frauds committed by bank officials.
Powers have been delegated by Department of Financial Services (DFS) to the Boards of public sector lenders to put in place a suitable mechanism for ensuring compliance of the various timelines laid down in RBI and CVC circulars, an official statement said.
“Similarly, the instructions of DFS of 2015 regarding compulsory examination of fraud for all NPA accounts exceeding Rs 50 crores have been aligned with the CVC circular of January 15, 2020 whereby all such cases of suspicious fraud are to be initially referred to the Advisory Board for Banking and Financial Frauds (ABBFF) headed by former vigilance Commissioner T M Bhasin,” it added.
Finance Minister Nirmala Sitharaman at several occasions assured bankers that adequate measures would be taken…