In view of an alarming rise in the number of bank fraudcases, the central bureau of investigation (CBI) is developing a sophisticatedinformation system to help an embattled banking industry. The system, called‘Bank Case Information System’ (BCIS), will contain details of accused persons,borrowers and public servants to help the agency in case of a fraud.
Addressing the 4th annual conference of CVOs of publicsector banks/financial institutions and CBI officers, CBI director Amar PratapSingh stressed on the need to plug existing loopholes to ensure that lendingand borrowing took places in a healthy and fraud-free environment. Singh addedthat once the protocol is worked out, this information may be made available tofield functionaries of the banking sector in collaboration with the Indian bankassociation (IBA).
The banking sector has incurred losses amounting to Rs 3,799crore in 2010-11 as opposed to Rs 2,017 crore in 2009-10 due to fraud. TheCBI’s bank securities & fraud cell has already registered fraud casesamounting to Rs 2,500 crore from January to July this year.
As per the revised threshold limit notified by the CVC, CBIwill now only register bank fraud cases involving loss of over Rs 3 crore.Frauds involving loss of below Rs 3 crore will be reported to state police.Clarifying that the agency’s role is only to investigate criminality in bankfrauds such as cheating, criminal conspiracy, forgery, concealment, abuse ofofficial position, Singh said that the bank often files a complaint with theCBI to put pressure on an erring client but refuses to co-operate thereafter.
The conference discussed important issues relating to roleof third parties in bank financing, complaints, investigation & RDA, trial& prosecution and coordination.
