Private, foreign banks to have whistle-blowers

The Central Government had passed a resolution on April 21, 2004 authorising the Central Vigilance Commission (CVC) as the ‘Designated Agency’ to receive written complaints or disclosure on any allegation of corruption or of misuse of office and recommend appropriate action.

The jurisdiction of the CVC in this regard is restricted to employees of the Central Government or of any corporation established by it or under any Central Act, government companies, societies or local authorities owned or controlled by the Central Government. All public sector banks and the Reserve Bank of India are already covered by this resolution.

This scheme would cover all private sector and foreign banks operating in India. It would be extended to other RBI regulated entities such as primary (urban) co-operative banks, local area banks and non-banking financial companies etc. in due course of time.

According to the RBI, the complaints under the scheme cover the areas such as corruption, misuse of office, criminal offences, suspected or actual fraud, failure to comply with existing rules and regulations such as the RBI Act, 1934, Banking Regulation Act 1949, etc and acts resulting in financial loss, operational risk, loss of reputation etc which detrimental to depositors/public interest.

Under the scheme, employees of the bank concerned, customers, stakeholders and NGOs can lodge complaints. Anonymous or pseudonymous complaints will not be covered under the scheme and such complaints will not be entertained. The RBI will be the nodal agency to receive complaints under the Scheme.

The RBI would keep the identity of the complainant secret, except in cases where complaint turns out to be vexatious or frivolous and action has to be initiated against the complainant. The institution against which complaint has been made can take action against complainants in cases where motivated or vexatious complaints are made under the scheme, after being advised by the RBI.

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