Page 31 - BANKING FINANCE APRIL 2017

ARTICLE

2. Electronic / Print Media / Other Sources.

3. Customer and transaction details through centralized
data base, especially by the Offsite Monitoring Cells at
Corporate Office and Administrative controlling Offices.
4. Prompt reconciliation of inter office accounts.
5. Controllers' Visits / Surprise Checking.

6. Audit / inspections, including Special Reports, by inter-
nal and external agencies.

7. Periodical changes in incumbencies - Job Rotation
8. Anonymous / pseudonymous complaints with verifiable
facts.
9. Preventive Vigilance Visits. The scope of PVC includes, apart from staff empow-
erment:
10. Scrutiny of Control Returns.
 Identifying complex rules/procedures and simplifying
11. Unearthing of fraud during Police / CBI Investigation
the same
Directives of Department of Financial  Curtailing discretions,
Services (DFS):  Ensuring accountability
 Sensitizing the officials
It was observed that a large number of instances of Frauds
are not classified and reported in timely manner as per the  Facilitating a culture of honesty and promoting prac-
extant procedures by banks. They are reported at a very tices etc.
late stage and launching of prescribed criminal action/ other
action is also delayed, by which time the perpetrators of the PVCs formed would provide a platform to all staff members
fraud are typically successful in siphoning off a substantial of branches / administrative offices to come together and
part of the amount involved in fraud and even manage to find ways and means to strengthen the spirit of adherence
go absconding. with the norms to avert the fraud or irregular practices as
also to ensure an ongoing support for improvement of re-
Hence Department of Financial Services (DFS), Ministry of sultant preventive atmosphere at the branch / office.
Finance, Vigilance Section, New Delhi vide their communi-
cation No.4/5/214-Vig dated 18/03/2015 directed all the Pub- Guidelines for reporting of fraud to Po-
lic Sector Banks to put in place effective practices to pre- lice / CBI (In case of Public Sector Banks):
vent frauds and ensure timely reporting and follow up ac-
tion, when they occur. DFS also listed out a series of steps The guidelines of Central Vigilance Commission / RBI for
to be taken by the banks to ensure that the frauds are reporting cases of fraud to Police / CBI are as follows (at
avoided to the greatest extent possible through preventive Domestic Offices):
actions. 1. Cases of frauds above Rs.10,000/- but below Rs.1.00 lac
should be reported to the local police station by the
Accordingly many banks have started forming Preventive bank branch concerned.
Vigilance Committees starting from grass root level with the 2. Cases of financial frauds of the value of Rs.1.00 lac and
objective of attaining high levels of integrity within the sys- above, which involve outsiders and bank staff, should
tem and act as a catalyst for eliminating system weakness. be reported by the Regional Head to a Senior Officer of
PVCs will help in creating awareness amongst employees and the State CID/Economic Offences Wing of the State
develop commitment and probity at all levels and activities. Concerned.

BANKING FINANCE | APRIL | 2017 | 31

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