Zero Tolerance against Corruption in Banks

By | August 7, 2018
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(Last Updated On: August 8, 2018)

Ministry of Finance

Zero Tolerance against Corruption

Posted On: 07 AUG 2018 6:22PM by PIB Delhi

 Central Bureau of Investigation (CBI) has intimated that a total of 273 (268 Regular Cases (RCs) + 05 Preliminary Enquiry (PE)) cases have been registered by CBI relating to corruption in Banks during the year 2017 & 2018 (up to 30.6.2018).

The details of Banks involved in these cases are enclosed at Annexure–A.

Out of the above cases, Charge Sheets have been filed in 37cases against 166 persons/firms including 45 bank officers/officials.

The bank-wise details of these 45 officers/officials are enclosed at Annexure–B.

 Further, Central Vigilance Commission (CVC) has informed that the number of officers in respect of whom Commission has advised sanction for prosecution are as under:

Name of the BankFY 2017-18FY 2018-19 (till date)
Andhra Bank1 
Bank of Maharashtra1 
Indian Bank1
Punjab National Bank6
State Bank of India12
UCO Bank`2 
Total113

                                    Source: CVC

The Central Government is fully alive and committed to implement its policy of “Zero Tolerance against Corruption” and has taken several measures to combat corruption.

These, inter-alia, include:

  • Issue of Instructions by the CVC asking the organizations to adopt Integrity Pact in major procurement activities;
  • Ratification of the United Nations Convention against Corruption (UNCAC) in 2011;
  • Setting up of additional Special Courts exclusively for trial of CBI cases in different states.

The pro-active measures taken by CVC to ensure that incorrect practices do not happen in future, are as follows:

  • Constant updating of the Standard Operating Procedures (SOPs) pertaining to each activity;
  • Setting up robust Whistle Blower Mechanism so that the officials functioning at various levels within the organisation get a channel to share their concerns related to vigilance/systemic issues without any fear;
  • Identify areas, where (i) there are no rules (ii) the rules that have potential of being misinterpreted or (iii) rules that are impossible to follow and advice framing suitable rules;
  • Formation of Preventive Vigilance Committees at Medium and Large Branches to discuss/review at monthly intervals preventive vigilance measures and frauds during the preceding month;
  • Need for devising an effective system for review of quality of concurrent audit by peer Chief Vigilance Officers;
  • Visits of medium and large branches by Vigilance Officers;
  • Offsite Surveillance through reports on various parameters e.g. spike in business levels, cash deposits, remittances, etc.
  • Effective and expeditious investigation whenever any irregularity/misconduct is noticed;
  • Organising of regular Training Programmes at various levels;

Further, CVC guidelines are conveyed to all the Public Sector Banks (PSBs) from time to time for their meticulous compliance in the matter.PSBs regularly monitor their Systems & Procedures, Guidelines, Policies & Technology to incorporate suitable checks & balances in the system to curb corruption. PSBs have a Board approved Staff Accountability Policy and Regulations for taking action against officials involved in irregularities.

This was stated by Shri Shiv Pratap Shukla, Minister of State for Finance in a Written Reply to a Question in Rajya Sabha today.

ANNEXURE-A

Bankwise details of cases (RCs + Pes) registered by CBI relating to corruption in Banks.

Sl.No.Name of BankNo.of Cases/PEs Registered
Year
20172018
1UCO Bank75
2Meghalaya Rural Bank10
3IDBI Bank27
4Bank of India38
5Bank of Baroda43
6Syndicate Bank70
7Corporation Bank221
8ICICI Bank20
9State Bank of India2419
10Union Bank of India91
11Punjab National Bank2334
12Indian Oversis Bank61
13Indian Bank of Jammu10
14Co-parative Bank21
15Canara Bank156
16APGV Bank10
17Allahabad Bank23
18Central Bank of India13
19Vijay Bank30
20Central Madhya Pradesh Gramin Bank10
21Oriental Bank of Commerce15
22Bank of Maharashtra123
23Dena Bank40
24UttarakhandGramin Bank22
25State Bank of Mysore10
26State bank of Hyderabad20
27United bank of India01
28Lakshmi Vilas Bank10
29Andhra Bank10
30IFCI limited11
31TelanganaGramina Bank01
32Prathma Bank01
33SaptigiriGramin Bank01
34Bihar Co-oparative Bank20
35Muslim Co-oparative Bank20
36Punjab & Sindh Bank01
 Total165108

Source:CBI

  • There are instances where 01 or more than 01 Banks are involved.

ANNEXURE-B

Bank wise details of number of officials of Banks against whom charge sheet has been filed by CBI in cases of corruption in Banks.

2017

Sl. No.Name of BankBank Officers/Official involved
1Corporation Bank3
2State Bank of Travancore1
3State Bank of India5
4Indian Overseas Bank4
5Canara Bank1
6Bank of Maharashtra1
7Jalgaon District Central Co-op. Bank Ltd.3
8Dena Bank5
9UttarakhandGramin Bank1
10State Bank of Mysore4
11State Bank of Hyderabad1
12Syndicate Bank1
13Punjab National Bank2
 Total32

2018

Sl. No.Name of BankBank Officers/Official involved
1.Punjab National Bank13
 Total13

Source: CBI

This was stated by Shri Shiv Pratap Shukla, Minister of State for Finance in written reply to a question in Rajya Sabha.

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