CVC Report Analyzing Modus Operandi of Top 100 Banking Frauds Shared with RBI, CBI and ED

Vigilance Commissioner of the Central Vigilance Commission (CVC), Dr. Tejendra Mohan Bhasin, today announced that a detailed study of the Top 100 banking frauds that had been carried out in the country as reported since March 2017, had been thoroughly analyzed and compiled into a report that has been shared with the Reserve Bank of India (RBI), the Central Bureau of Investigation (CBI) and the Enforcement Directorate (ED). Speaking to the Press Trust of India in New Delhi, Bhasin said, “Based on the findings, various industry specific suggestions for systemic improvement have been given in the final report, which have also been sent to the Department of Financial Services and RBI (Reserve Bank of India), in order to plug the loopholes observed by the Commission. These studies have been done by the commission as a preventive vigilance tool by utilizing its vast experience of handling various cases of frauds and staff accountability related matters.”

The cases of fraud were classified along the lines of industry sectors that they pertained to, and even took into account categories such as, service and project, discounting of cheques, trading, information technology, letter of comfort, export business, fixed deposits and demand loan. The analysis of each case looked at modus operandi, amount involved, anomalies observed, loopholes that facilitated perpetration of the fraud concerned, while providing solutions that were better incorporated into standard operating procedures to be implemented by lenders as soon as possible.

When asked about the reason behind the preparation of such a report, Bhasin said, “The RBI has also confirmed to the commission that inputs given by the CVC are very useful and shall be used for systemic improvements to mitigate the risks.”