cvc and vigilance management in indian banks

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VIGILANCE MANAGEMENT IN PUBLIC SECTOR BANKS

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WHY VIGILANCE MACHINERY IN PUBLIC SECTOR ?

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TO CURB CORRUPTION THE SIMPLE ANSWER IS

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Setting up of Central Vigilance Commission Vigilance Department , HO New Delhi INITIATIVES BY GOVT. TO FIGHT CORRUPTION

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Set up in 1964 As per recommendations of Sanathanam Committee on “Prevention of Corruption” Vigilance Department , HO New Delhi SETTING UP OF CENTRAL VIGILANCE COMMISSION

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CVC is the apex vigilance institution, free of control from any executive authority, monitoring all vigilance activity under the Central Government and advising various authorities in Central Government organizations in planning, executing, reviewing and reforming their vigilance work. Vigilance Department , HO New Delhi CVC

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Made a MULTI MEMBER COMMISSION from 25th August,1998. Vigilance Department , HO New Delhi CVC - SET UP

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Vigilance Department , HO New Delhi Statutory status w.e.f.11.09.2003. CVC BILL

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The Commission consist of A Central Vigilance Commissioner - Chairperson; SHRI PRADEEP KUMAR And Two Vigilance Commissioners – Members SHRI R SRI KUMAR SRI. J M GARG Vigilance Department , HO New Delhi CVC - SET UP

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All public servants covered. For practical purposes, restricted jurisdiction to the officers of scale V and above in PSBs. In composite cases, case as a whole to be referred to the Commission. JURISDICTION IN PSBs

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Vigilance Department HO New Delhi ROLE OF VIGILANCE DEPARTMENT IN THE BANK To ensure that CVC is consulted at all stages, wherever required. To ensure prompt submission of returns to CVC.

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Vigilance Department , HO New Delhi VIGILANCE ANGLE – DEFINITION Obvious in the following acts: Demanding and /or accepting gratification other than legal remuneration in respect of an official act or for using his influence with any other official.

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Vigilance Department , HO New Delhi VIGILANCE ANGLE – DEFINITION Obtaining valuable thing, without consideration or with inadequate consideration from a person with whom he has or likely to have official dealings or his subordinates have official dealings or where he can exert influence.

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Vigilance Department , HO New Delhi Obtaining for himself or for any other person any valuable thing or pecuniary advantage by corrupt or illegal means or by abusing his position as a public servant. VIGILANCE ANGLE – DEFINITION

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Vigilance Department , HO New Delhi VIGILANCE ANGLE – DEFINITION Possession of assets disproportionate to known sources of income.

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Vigilance Department , HO New Delhi VIGILANCE ANGLE – DEFINITION Cases of misappropriation, forgery or cheating or other similar criminal offences.

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Vigilance Department , HO New Delhi VIGILANCE ANGLE - DEFINITION Circumstances to be weighed carefully to take a view whether the officer’s integrity is in doubt.

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Vigilance Department , HO New Delhi Three member Internal Advisory Committee constituted to scrutinize the complaints received in the bank and also the cases arising out of inspections and audit etc; and to determine involvement of vigilance angle, or otherwise, in those transactions. VIGILANCE ANGLE - DETERMINATION

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Vigilance Department , HO New Delhi Only the cases falling between extreme / absolute vigilance and extreme / absolute non-vigilance need to be referred to IAC. VIGILANCE ANGLE - DETERMINATION

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Vigilance Department , HO New Delhi All decisions to be unanimous. In case of difference of opinion between the members, majority view to be stated. CVO to refer his views to the DA. In case of difference of opinion between DA and CVO, matter to be referred to the CVC for advice. VIGILANCE ANGLE - DETERMINATION

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Vigilance Department , HO New Delhi CASES WHERE VIGILANCE ANGLE IS PERCIEVED, CHARGESHEET TO BE SERVED AFTER OBTAINING ADVICE FROM CVO/CVC. VIGILANCE ANGLE - ACTION

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Vigilance Department , HO New Delhi Documents required for FIRST stage advice: Preliminary investigation report. Documents and records connected with the case. Neatly typed tabular statement. Copy of self assessment note put up to the DA, clearly indicating facts of the case / recommendations. In cases where investigation is done by CBI, State Vigilance Bureau / Police, copy of report and comments of DA. Contd.

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Vigilance Department , HO New Delhi Documents required for FIRST stage advice: In composite cases, staff side cases of all the delinquent officials involved should be forwarded in one go by categorizing the cases under category A and B, depending upon nature of lapses. Draft charge sheet Apprehended loss, if identifiable. Bio-data of all the officials.

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Vigilance Department , HO New Delhi Documents required for SECOND stage advice: Copy of charge sheet. Copy of inquiry report and entire case record of enquiry, viz., copies of depositions, daily order sheets, exhibits, written briefs of PO and CO. Comments of DA on the assessment of evidence done by the EO and on further course of action to be taken (Self contained note). Contd…

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Vigilance Department , HO New Delhi Documents required to be submitted for SECOND stage advice: Proposed order of DA alongwith financial implication of punishment proposed. . Extent of loss suffered by the Bank due to lapses attributed to the CO. Wherever the enquiry proceedings have been delayed, the DA to specifically comment on the delay, fixing accountability and action taken / proposed.

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Vigilance Department , HO New Delhi APPEAL & REVIEW Appellate Authority expected to keep in view the advice tendered and decide on appeal. In case Appellate Authority decides to deviate from the advice given by the Commission on appeal, matter to be reported to the notice of CVO, who will inform CVC, which will take an appropriate view whether the deviation is serious enough to be included in the Annual Report.

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Vigilance Department , HO New Delhi APPEAL & REVIEW Reconsideration of advice will be only in exceptional circumstances at the specific recommendation of DA, before a decision is taken by it to impose the punishment or otherwise. After a decision has been taken by the DA or the Appellate Authority, the CVC will not entertain any reconsideration proposal. Such cases will be treated by CVC as “deviation” from non-acceptance of its advice.

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Vigilance Department , HO New Delhi DIFFERENCE OF OPINION BETWEEN CVO AND CMD In case of difference of opinion between the CVO and DA, in cases not to be referred to the CVC, matter to be placed before the CMD. In case, CMD is DA, matter to be referred to the CVC.

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Vigilance Department , HO New Delhi OBSERVANCE OF TIME LIMITS STATE OF INVESTIGATION / INQUIRY TIME LIMIT 1 Reconsideration of CVC advice, if any One month from the date of receipt of advice. 2 Issue of charge sheet, if required. One month from the date of CVC advice. Two months from the date of receipt of investigation report. 3 Submission of defence statement. Ordinarily ten days. Contd Other than Vigilance “F” cases

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Vigilance Department , HO New Delhi OBSERVANCE OF TIME LIMITS STATE OF INVESTIGATION / INQUIRY TIME LIMIT 4 Consideration of defence statement. 15 days. 5 Issue of final orders in minor penalty cases. Two months from the receipt of defence statement. 6 Appointment of EO/PO in major penalty cases. Immediately after receipt and consideration of defence statement. Contd Other than Vigilance “F” cases

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Vigilance Department , HO New Delhi OBSERVANCE OF TIME LIMITS STATE OF INVESTIGATION / INQUIRY TIME LIMIT 7 Sending a copy of the EO’s report to the CO for his representation. Within 15 days 8 Reconsideration of EO’s representation and forwarding EO’s report to the CVC for second stage advice. One month from the date of receipt of representation. Other than Vigilance “F” cases

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Vigilance Department , HO New Delhi OBSERVANCE OF TIME LIMITS STATE OF INVESTIGATION / INQUIRY TIME LIMIT 9 Issuance of orders on the enquiry report. One month from the date of CVC advice. Two months from the date of receipt of EO’s report if CVC’s advice is not required. 10 Reconsideration of CVC’s second stage advice. Two months of receipt of CVC’s advice. Other than Vigilance “F” cases

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Vigilance Department , HO New Delhi OBSERVANCE OF TIME LIMITS STATE OF INVESTIGATION / INQUIRY TIME LIMIT 1 Issue of charge sheet 15 days from the date of receipt of CVC advice or one month from the date of receipt of the investigation report. 2 Time for submission of Defence statement Ten days. 3 Appointment of EO/PO in major penalty cases. Immediately after receipt of consideration of defence statement. Vigilance “F” cases

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Vigilance Department , HO New Delhi OBSERVANCE OF TIME LIMITS STATE OF INVESTIGATION / INQUIRY TIME LIMIT 4 Conduct of departmental enquiry and submission of report Two months from the date of appointment of EO/PO. 5 Sending a copy of EO report to the CO for his representation. Within one week of receipt of EO’s report if any article of charge has been held as proved. 15 days if any of the charges is held as not proved. Vigilance “F” cases

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Vigilance Department , HO New Delhi OBSERVANCE OF TIME LIMITS STATE OF INVESTIGATION / INQUIRY TIME LIMIT 6 Consideration of CO’s representation and forwarding EO’s report to the Commission for forwarding second stage advice. 15 days from the date of receipt of representation. 7 Issuance of orders on enquiry report. Within one month from the date of receipt of EO’s report. Vigilance “F” cases

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Vigilance Department , HO New Delhi REPORTING AND CONFIRMATION After a transaction of exceeding of powers / discretion in the normal course of business, matter to be reported immediately to the controlling authority. Rejection / grant within 15 day of report. In case of queries/clarifications, another 15 days time.

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Vigilance Department , HO New Delhi REPORTING AND CONFIRMATION In all circumstances, to be ensured that decision is taken within one month of receipt of original report. Otherwise, transaction will be deemed to have been ratified. If transaction to be ratified by Board, confirmation to be obtained in the next meeting.

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Vigilance Department , HO New Delhi TIME LIMIT FOR INITIATION OF DISC. PROCEEDINGS No disciplinary proceeding will normally lie against any official for any lapse not detected within two successive internal regular / audits / inspections of the same account or within 4 years from the date of event, whichever is later.

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Vigilance Department , HO New Delhi TIME LIMIT FOR INITIATION OF DISC. PROCEEDINGS This time limit will not apply to cases of (1) frauds, (2) Other criminal offences, (3) cases where mala-fides are inferable.

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CBI inquires and investigated Offences pertaining to corruption and malpractices involving public servants. In case, the information discloses, prima facie, commission of cognizable offence, a regular case (RC) is registered U/S 154 Cr. PC. In case, it calls for further inquiry, a preliminary enquiry (PE) is first registered. INVESTIGATIONS BY CBI

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Necessary for CBI to refer cases of Borrowal frauds to the Advisory Boards for their expert advice, in case the matter is not referred to CBI for investigation by CVO. Non-Borrowal frauds not to be referred to the Board. COMPLAINTS TO CBI / POLICE - ADVISORY BOARDS