Thursday, May 15, 2014

RBI steps in to end ‘Unfair’ Scrutiny of PSU Bankers

The banking regulator Reserve Bank of India has begun a dialogue with the Central Vigilance Commission (CVC) to define terms like frauds and diversion of funds with an aim to put an end to numerous cases of officers paying a price for genuine business decisions going wrong and rivals using CVC as a tool to stall many a career. A bank chief from a public sector bank who did not want to be named while questioning the modus operandi of the CVC has said that if funds are diverted, but the business does not suffer, it’s not a fraud. If funds are diverted by a rich company, isn’t it a fraud? But if the business fails, then the authorities are quick to say there is an element of fraud.

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