Advisory Board for Banking Frauds (ABBF)

Context

  • The Central Vigilance Commission (CVC) has constituted an Advisory Board for Banking Frauds (ABBF).
  • It will be headed by former Vigilance Commissioner T.M. Bhasin to examine bank fraud of over ₹50 crore and recommend action.
  • The panel in its previous avatar was called the Advisory Board on Bank, Commercial and Financial Frauds.

Terms of reference

  • The ABBF, formed in consultation with the RBI, would function as the first level of examination of all large fraud cases before recommendations or references are made to the investigative agencies by the respective public sector banks (PSBs)..
  • The four-member board’s jurisdiction would be confined to those cases involving the level of officers of General Manager and above in the PSB in respect of an allegation of a fraud in a borrowal account.
  • Lenders would refer all large fraud cases above ₹50 crore to the board and on receipt of its recommendation or advice, the bank concerned would take further action in such matter.
  • The CBI may also refer any case or matter to the board where it has any issue or difficulty or in technical matters with the PSB concerned.
  • The board would also periodically carry out frauds analysis in the financial system and give inputs for policy formulation related to the fraud to the RBI.
  • Headquartered in Delhi, the Reserve Bank of India will provide required secretarial services, logistic and analytical support along with the necessary funding to the board.

Membership of the panel

  • The tenure of the Chairman and members would be for a period of two years from August 21, 2019,

Source:TH