Probity watchdog Central Vigilance Commission (CVC) has shared its report on top 100 banking frauds and shared its analysis with the RBI, ED and CBI among others, Vigilance Commissioner TM Bhasin said on Tuesday. The reports included frauds in the jewellery and aviation sectors.
The main focus of the analysis involved the amount involved, type of lending, anomalies observed, loopholes that facilitated perpetration of the fraud concerned and the systemic improvements required to plug the gaps in the system and procedures.
The frauds were classified and analysed for 13 sectors including gem and jewellery, manufacturing and industry, agro, media, aviation, service and project, discounting of cheques, trading, information technology, export business, fixed deposits, demand loan and letter of comfort.
Analysis of the modus operandi of these top 100 loans has thoroughly been done and several loopholes have been identified, said Bhasin.
"Based on the findings, various industry specific suggestions for systemic improvement have been given in the final report, which have also been sent to the Department of Financial Services and RBI (Reserve Bank of India), in order to plug the loopholes observed by the Commission," he said.
The findings have also been shared with the Enforcement Directorate (ED) and the Central Bureau of Investigation (CBI), he added.
Commenting on the measures suggested, the Vigilance commissioner counted strengthening of standard operating procedures (SOPs) and the monitoring system, along with highlighting the role of controlling offices, so as to examine the aspect of quality of business.
The move by the CVC holds relevance in the wake of bank frauds by high-profile billionaire Nirav Modi and liquor baron Vijay Mallya among others.
The report, which has also been shared with the Ministry of Corporate Affairs, carries analysis of large value frauds reported since March 31, 2017.
"The RBI has also confirmed to the commission that inputs given by the CVC are very useful and shall be used for systemic improvements to mitigate the risks," Bhasin said.
The report has exposed details of the frauds in the gem and jewellery sector, along with citing different modus operandi by private companies.