CVC moots electronic clearance

Expressing concern over growing cases of fraud and irregularities in the banking system, Vittal said the changes would make it essential for nationalised banks to computerise at least 70 per cent of their operations by January 1, 2001.

Giving details of the proposed arrangement, Vittal said the Reserve Bank of India will be providedwith 400 to 450 V-sats which will make it possible to hook the public sector banks with the RBI.

Presently the RBI has just one-eighth of transponder space in V-sat which would be increased to half transponder space to receive information from banks about frauds and willful default, he said. The banks will be required to report fraud cases of Rs 25 lakh and above to the RBI which in turn will be circulated to all banks to ensure such entities do not open new accounts in other banks, he added.

Computerisation would drastically reduce various irregularities being committed due to lack of modernisation in the banking system, he said.

Vittal8217;s discussions with officers of banks is targeted to strengthen vigilance and expedite enquiry process in banking sector.