Wednesday, March 05, 2025 | 02:09 PM ISTहिंदी में पढें
Business Standard
Notification Icon
userprofile IconSearch

Bankers get shield from fraud heat; boards of PSBs to be held accountable

Measures to protect prudent commercial decisions of PSB brass

Money, Banks
Premium

Somesh Jha New Delhi
The government has watered down its framework for dealing with high-value frauds in a bid to encourage managing directors (MDs) and chief executive officers (CEOs) of state-owned banks to take commercial decisions fearlessly.

Instead of MDs and CEOs, the boards of public sector banks (PSBs) will now be held accountable for the various regulator-prescribed timelines for reporting or investigating frauds above Rs 50 crore, according to a directive sent by the finance ministry to banks.

The finance ministry had in May 2015 created the framework on “timely detection, reporting, and investigation” relating to large-value bank frauds. “The overall responsibility” for ensuring compliance

What you get on BS Premium?

  • Unlock 30+ premium stories daily hand-picked by our editors, across devices on browser and app.
  • Pick your 5 favourite companies, get a daily email with all news updates on them.
  • Full access to our intuitive epaper - clip, save, share articles from any device; newspaper archives from 2006.
  • Preferential invites to Business Standard events.
  • Curated newsletters on markets, personal finance, policy & politics, start-ups, technology, and more.
VIEW ALL FAQs

Need More Information - write to us at assist@bsmail.in