The panel, Advisory Board for Banking Frauds (ABBF), will decide the course of action for each of these cases, including a reference to investigating agencies such as the Central Bureau of Investigation. “ABBF would function as the first level of examination of all large fraud cases before recommendation/references are made to the investigative agencies…,” CVC has said in a notification.
CVC, in consultation with the Reserve Bank of India, has reconstituted the Advisory Board on Bank, Commercial and Financial Frauds as ABBF.
The board’s jurisdiction would be limited to those cases involving the level of officers of general manager and above in public sector banks if there is allegation of fraud in a borrowed account.
“Individual PSBs would refer all large fraud cases above Rs 500 crore to the board and on receipt of its recommendation/advice, the PSB concerned would take further action in such matters,” the notification said.
ABBF will be headed by TM Bhasin, former CMD of Indian Bank and also a former vigilance commission of the CVC. The decision follows recommendation by an RBI-constituted expert committee on non-performing assets and frauds headed by YM Malegam.