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Don’t report frauds below 1 lakh to police unless bank staff is involved: CVC to banks

LiveMint logoLiveMint 16-06-2017 PTI

New Delhi: The Central Vigilance Commission (CVC) has asked public sector banks not to report frauds below Rs one lakh to local police, unless their staff is involved in such crimes.

Earlier banks were mandated to report fraud of above Rs10,000 and below Rs one lakh to police.

The decision was taken by the CVC in consultation with the Reserve Bank of India (RBI), taking into the account the practical difficulties faced by public sector banks in reporting such categories of cases.

It has been decided that only if staff of the bank is involved in the fraud cases of below Rs one lakh and above Rs10,000, would such cases need to be reported or complaint filed with local police station by the bank branch concerned, the commission said in a directive to chiefs of all the banks.

The cases of frauds of upto Rs one lakh and not below Rs10,000 are to be scrutinised by banks officials concerned for further necessary action, a senior CVC official said.

As of 30 September 2016, the Non-Performing Assets (NPAs) declared by various scheduled commercial banks stood at a whopping Rs6,65,864 crore, according to an official data.

The NPAs of the country’s largest lender State Bank of India is Rs97,356 crore, followed by Rs54,640 crore of Punjab National Bank and Rs44,040 crore of Bank of India, it said.

Bank of Baroda has NPAs of Rs35,467 crore, Canara Bank Rs31,466 crore, Indian Overseas Bank Rs31,073 crore, Union Bank of India Rs27,891 crore, IDBI Bank Ltd Rs25,973 crore, Central Bank of India Rs25,718 crore, Allahabad Bank Rs18,852 crore and Oriental Bank of Commerce Rs18,383 crore, said the data, which was given by the government in Rajya Sabha in August last year.

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