 "PSBs urge CBI for timely FIR registration, regular updates on case progress")
Public sector banks (PSBs) have highlighted delays in registration of first information reports (FIRs) and the need for periodic updates from the Central Bureau of Investigation (CBI) on case progress, closure reports, investigation reports, and final decision regarding conviction or acquittal taken by courts, according to a source directly familiar with the matter.
“Banks have raised concerns about treatment of bankers during investigations and perceived harassment of officials have been widely expressed. Banks have also suggested that unless there is prosecution sanction, names of public servants (bankers) should not be cited as accused in the charge sheet,” said the source.
The Department of Financial Services (DFS) on Wednesday organised a coordination meeting of PSBs on vigilance matters. The meeting was attended by Financial Services Secretary M Nagaraju, State Bank of India chairman CS Setty, the CBI director, Indian Banking Association (IBA) chief executive, chief vigilance officer (CVO) of PSBs, managing directors and chief executive officers (CEOs) of PSBs, and officials from the Department of Personnel and Training (DoPT) and the home ministry.
The source also said that registration of FIRs is pending in as many as 1,078 cases even after lodging complaints.
“As many as 868 complaints are pending from more than 24 months for FIR registration. The IBA-appointed committee has recommended holding of regular meetings between CBI and banks. It is expected that such a joint mechanism will bring down this pendency time,” added the source.
The IBA has proposed another round of amendments to the Prevention of Corruption Act, 1988, aiming to address concerns from bankers, who fear post-retirement harassment by investigative agencies over genuine decisions that may have gone wrong.
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“Banks have recommended that prior approval under section 17A should only be sought when substantive evidence of mala fide intent or criminal conspiracy exists,” said the source.
In a statement, the finance ministry said that in the meeting it was discussed that bank-related fraud cases are a major area of concern. “The government has taken various measures, such as Insolvency and Bankruptcy Code (IBC) and creation of National Asset Reconstruction Company (NARCL) for resolution of stress in banking assets, leading to an improvement in asset quality and performance of PSBs,” it said.
The statement said PSB Alliance — a company set up by PSBs to jointly offer important customer-oriented services — made a presentation about “asset tracing” IT applications. The application will provide detailed information to PSBs about the assets taken as security for extending a credit facility. Various features of IT applications were discussed during the course of the meeting. “It was decided that all PSBs will independently evaluate the requirement of such an application for their organisation,” it added.