Home >Politics >Policy >Six bank CEOs under CBI, ED investigation: Government

NEW DELHI : As many as half a dozen CEOs of banks are under the investigation of the Central Bureau of Investigation and Enforcement Directorate, the government has informed Parliament.

However, no arrest has been made in the above cases, Minister of State for Finance Anurag Singh Thakur said in a written reply in the Lok Sabha.

"As per the extant guidelines on Public Interest Disclosure and Protection of Informers Resolution (PIDPI), Central Vigilance Commission (CVC) has been given powers to act on complaints from whistleblowers," he said.

"The Chief Vigilance Officer of the Ministries or Departments of Government of India is the designated Authority to receive written complaints or disclosures on any allegation of corruption or misuse of office by any employee of that Ministry or Department or Government companies or of any corporation falling within the jurisdiction of that Ministry," he said.

Fundamental governance reforms of far-reaching significance have been effected in public sector banks (PSBs), he said.

To strengthen governance at the board level, the position of chairman and managing director has been bifurcated into a non-executive chairman and an MD and CEO, and a professional Banks Board Bureau has been created for arm's length selection of non-executive Chairmen and whole-time directors (WTDs), he added.

Performance-based extensions have been instituted for WTDs, he added.

Further, he said comprehensive reforms to institutionalise responsible banking have been effected through codified policies and audited procedures for prudential lending, and robust data-driven risk assessment and monitoring.

Board-approved loan policies of PSBs now mandate tying up necessary clearances or approvals and linkages before disbursement, scrutiny of group balance-sheet and ring-fencing of cash flows, non-fund and tail risk appraisal in project financing, he said.

Monitoring has been strictly segregated from sanctioning roles in high-value loans, and specialised monitoring agencies combining financial and domain knowledge have been deployed for effective monitoring of loans above 250 crore, he added.

Subscribe to Mint Newsletters
* Enter a valid email
* Thank you for subscribing to our newsletter.

Never miss a story! Stay connected and informed with Mint. Download our App Now!!

Edit Profile
My ReadsRedeem a Gift CardLogout