Banks set to report frauds to CBI


08 Aug 2016

Banks given the heads up to report frauds to CBI

India's public sector banks can now report and file charges on high value frauds with the Central Bureau of Investigation (CBI).

High value frauds refer to those that amount to Rs. 50cr and above.

This shift was brought into effect when the RBI, India's central bank, noted that the banks could not report to a focal authority for complaints on massive frauds it faced.

CBI to act as nodal authority for banks

"The CBI will act as a centralized agency to receive complaints of frauds from banks," Central Vigilance Commissioner K V Chowdary told media reporters at a press conference.

Fraud charges

Private sector banks and filing fraud charges

Private sector banks and filing fraud charges

All private sector and foreign banks in India facing frauds of over Rs. 1lakh may report them to the state police.

It also stated that frauds amounting to Rs. 10,000 and above must be filed with the state police.

In case the frauds amount to more than Rs. 1crore, complaints must be filed with the state police along with the Serious Fraud Investigation Office.

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Fraud complaints from public sector banks

The public sector banks that witness frauds varying from Rs. 3crore to Rs. 25crore may file charges with the CBI's Anti Corruption Branch or its Economic Offences Wing.

Frauds that amount to anything between Rs. 25crore and Rs. 50crore can be filed with the CBI's Banking Security and Fraud Cell.

All frauds over Rs. 50crore may approach the agency's Joint Director for charges.

08 Aug 2016

CBI's Joint Director to receive fraud complaints

CBI's Joint Director to receive fraud complaints

With the new provisions for the banks, the CBI has enabled authorization for its Joint Director officer to face the complaints and later initiate investigations by the agency's different wings on the complaints.

The Chief Vigilance Officers of the Central Vigilance Commission will be placed as the nodal officers for coordination purposes.

The year 2015 saw the CBI probe nearly 171 fraud cases.

13 Mar 2017

ICICI, SBI top bank fraud list

Data from the RBI has revealed that ICICI bank had the maximum number of bank-fraud related cases between April-December 2016. SBI came in second.

455 fraud cases of over Rs. 1 lakh were recorded in ICICI Bank, while SBI recorded 429, Standard Chartered, 244 and HDFC Bank, 237.

The RBI data also revealed possible involvement of bank staffers in the fraud.

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