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Advisory Board for Banking Frauds (ABBF)

Topics covered:

  1. Statutory, regulatory and various quasi-judicial bodies.

 

Advisory Board for Banking Frauds (ABBF)

 

Context: The Central Vigilance Commission (CVC) has constituted an ‘Advisory Board for Banking Frauds (ABBF)’ to examine bank fraud of over ₹50 crore and recommend action.

Headquartered in Delhi, the Reserve Bank of India (RBI) will provide required secretarial services, logistic and analytical support along with the necessary funding to the board.

 

Composition:

  • Besides the chairman, the Board consists of three other members.
  • The tenure of the Chairman and members would be for a period of two years from 21st August, 2019.

 

Functions:

  1. The board’s jurisdiction would be confined to those cases involving the level of officers of General Manager and above in the Public Sector Banks in respect of an allegation of fraud in a borrowal account.
  2. It 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).
  3. 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.
  4. The Central Bureau of Investigation 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.
  5. It would also periodically carry out frauds analysis in the financial system and give inputs for policy formulation related to the fraud to the RBI.

 

Sources: the Hindu.

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