The Central Vigilance Commission (CVC), India’s apex vigilance institution, has recently established an ‘Advisory Board for Banking Frauds (ABBF)’. This Board is specifically designed to inspect bank fraud that exceeds ₹50 crore and recommend appropriate action. The ABBF is chaired by former Vigilance Commissioner, T.M. Bhasin, and is inclusive of three other members.
Composition and Tenure
The Chairman of the ABBF is T.M. Bhasin, who previously served as the Vigilance Commissioner. Alongside him, the board comprises three additional members. According to the terms set up by the Central Vigilance Commission (CVC), the tenure of the Chairman and the members would last for a period of two years commencing from 21st August, 2019.
Headquarter and Support
The Advisory Board for Banking Frauds (ABBF) is headquartered in Delhi, the capital city of India. The Reserve Bank of India (RBI), the central banking institution of the country, is entrusted with the responsibility of providing the necessary secretarial services, logistic and analytical support, and funding to the board. This support from RBI ensures the smooth function of the board.
Roles and Responsibilities
The four-member ABBF has its jurisdiction restricted to cases that involve officers of General Manager level and above in the Public Sector Banks where allegations of fraud in a borrowal account have been made. The board acts as the initial level of examination for all large fraud cases before further recommendations are sent to the investigation agencies by the respective public sector banks (PSBs).
Lenders will be required to refer all large fraud cases that exceed ₹50 crore to the board. Once the board provides its recommendation or advice on such cases, the bank concerned would be expected to take further action on the matter.
Collaboration with Central Bureau of Investigation
The country’s prime investigating agency, the Central Bureau of Investigation (CBI), can also refer any case or matter to the ABBF if it encounters any issue, difficulty, or requires technical assistance with the Public Sector Bank (PSB) concerned.
| Date of Inception | 21st August, 2019 |
|---|---|
| Head of the Board | T.M. Bhasin |
| Fraud Value Examined | Above ₹50 crore |
| Support Provided by: | Reserve Bank of India (RBI) |
Policy Formulation and Proactive Measures
In addition to dealing with specific fraud cases, the ABBF is also expected to periodically conduct a comprehensive analysis of frauds within the financial system. The findings derived from this analysis will provide valuable inputs for policy formulation related to banking fraud prevention to the Reserve Bank of India (RBI).
