Banks frauds exceeding over Rs 3 crore will need panel approval to decide if a CBI investigation is required.
The Central Vigilance Commission (CVC) has made a new amendment that bank frauds exceeding Rs 3 crore will get referred to a panel that will decide if a CBI investigation is required.
Before this, the rule was that bank frauds above Rs.50 crores were referred to panels. Bankers have asked the finance ministry to provide a “sunset period” for investigative agencies to prevent making business decisions. Raising concern over the issue, bankers also stated that agencies like CBI or CVC shouldn’t investigate loan accounts that stay standard up to 10 years.
A banker said, “There can be issues due to the prevailing situation in the economy or a particular industry, or a company’s product may become obsolete over a period (of time).” He added, “But if there are no problems for a certain number of a specified number of years, then there is no need to go on a witch hunt, some of which happens post-retirement.”
Departments of various financial services (DFS), RBI, and CVC have agreed to amend rules in fraud cases. However, DFS hasn’t taken any steps as of now. All fraud cases that will come on and after 6th January 2022 will get referred to the panel.