New Delhi (Agency): Suresh N Patel, former Central Vigilance Commissioner (CVC), has been appointed to head an advisory board tasked with examining the role of top bank officials in fraud cases. The board, known as the Advisory Board for Banking and Financial Frauds (ABBFF), will focus on public sector banks, public sector insurance companies, and public sector financial institutions in cases of frauds amounting to Rs 3 crore and above.
Joining Patel on the board are several distinguished members, including Ravikant, former secretary of the Department of Ex-Servicemen Welfare; Rajni Kant Mishra, former director-general of the Border Security Force; David Rasquinha, ex-MD of the EXIM Bank; and Partha Pratim Sengupta, ex-MD and CEO of the Indian Overseas Bank. The tenure of the chairman and members is set for a period of two years, effective from August 21, 2023, according to the official order issued by the Central Vigilance Commission.
The ABBFF’s mandate is clear: to assess the involvement of officials and whole-time directors (including former officials and directors) in fraud cases of significant value. The order dated August 18 states that all relevant public sector entities must refer matters of frauds involving sums of Rs 3 crore and above to the board for advice before initiating criminal investigations. Furthermore, the advice of the board must be made available to investigating agencies, who may take it into account while taking actions in such cases.
In addition to examining specific cases, the Central Vigilance Commission or the Central Bureau of Investigation (CBI) can also refer any case or technical matter to the board for its insights. The ABBFF can provide inputs for policy formulation related to frauds to the Reserve Bank of India and the Central Vigilance Commission as well.
The creation of the ABBFF and the appointment of Suresh N Patel as its chairman represent significant steps in the ongoing effort to combat financial fraud within India’s banking sector. By focusing on the role of top officials in fraud cases, the board aims to ensure accountability and transparency within public sector financial institutions. The ABBFF will ordinarily tender its advice within a month of receiving the initial reference, demonstrating a commitment to timely action.
The formation of the ABBFF and the leadership of Suresh N Patel signal a proactive approach to addressing financial frauds in India’s public sector banking and financial landscape. The board’s mandate to scrutinize the role of top officials adds a layer of oversight and vigilance, reinforcing the government’s dedication to maintaining integrity and trust within the financial system. The two-year tenure of the board offers an opportunity to make a meaningful impact in the fight against fraud, reflecting broader efforts to ensure financial stability and confidence in India’s economic institutions.