Press Information Bureau

Government of India

Ministry of Finance

02-November-2011 18:18 IST

Conference of CVOs Organized by Department of Financial Services, Ministry of Finance

During the Vigilance Awareness Week, Department of Financial Services, Ministry of Finance organised a full day Conference of Chief Vigilance Officers in Public Sector Banks, Public Sector Insurance Companies and Financial Institutions, here today. The conference was inaugurated by Shri Pradeep Kumar, Chief Vigilance Commissioner. Shri JM Garg, Vigilance Commissioner and Shri Balwinder Singh, Special Director, CBI were guests of honour.

Addressing the Conference, Shri Pradeep Kumar, Chief Vigilance Commissioner expressed his satisfaction about vigilance administration in Banks. He recognised the strength of Indian Banking System which with stood the global financial crisis. He raised the concern over the increasing trend of financial scam and frauds surfacing in the system. He emphasized the need for risk management, understanding the complexities involved in the financial decisions, to leverage IT system, computerization of land records etc. which will go a long way in preventing frauds, corruption and improvement in vigilance and Banking & Insurance Sector. He also stressed that vigilance administration to be sensitive to business risk.

Speaking on the occasion, Shri JM Garg, Vigilance Commissioner while praising the banking system, highlighted the increasing tendency of complaints. He stressed that CVOs in banking should hold structured meetings frequently and vigilance administration to focus on preventive vigilance as well. He highlighted that recognizing the good vigilance practices in public sector banks; RBI has recently issued guidelines for setting up vigilance system on the similar lines in private sector and foreign banks.

Shri DK Mittal, Secretary (FS), stressed upon the need to provide an environment which encourages taking commercial decisions by the honest persons while punitive action is taken against the wrong doers. He felt that there is a need to have a fine balance between oversight and a bonafide decision making. He highlighted the initiatives taken by the Department of Financial Services for bringing transparency, fairness to improve delivery of services to the common citizen, some of them being e-payment, e-governance, citizen charter by all the institutions under the Department.

Shri Balwinder Singh, Special Director, CBI raised his concern on big ticket frauds happening in the banking system. He highlighted the involvement of intermediaries, loan arrangers, etc. and advised CVOs to be more careful in preventing such people in having access in the banking circle. He also stressed the need for strengthening vigilance system in insurance companies.

During the conference a number of sessions were organised, which were addressed by distinguished panellists namely Shri VK Gupta, Special Director, CBI, Shri Rakesh Singh, Addl Secretary, FS, Shri Anil Sinha, Addl Secretary CVC, Shri KR Kamath, CMD PNB, Shri Basant Seth, CMD Syndicate Bank and CVOs. Shri Rakesh Singh, Additional Secretary in his valedictory address emphasized the role of banks in supporting India’s growth story and need for banks to gear up to address complexities which may arise. Shri Anil Sinha, Additional Secretary, CVC gave an insight on the behaviour finance and emphasized the need for drawing a fine balance while taking commercial decision.

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Preventive vigilance urged to curb financial frauds, using risk management and IT while balancing oversight with commercial decision making. The conference urged strengthening vigilance administration through preventive vigilance and enhanced risk management, recommending greater use of IT and e governance to prevent fraud, tighter controls over intermediaries and loan arrangers, and stronger vigilance frameworks in insurance; it also stressed balancing oversight with bona fide commercial decision making and institutionalising regular CVO coordination and recognition of good practices.