New Delhi: In a bid to restrain the banking frauds, the Reserve Bank of India (RBI) on Friday chalked out new policies and strategies to curb any such irregularities in future.

Issuing new directions, RBI has asked the government, private and foreign banks to keep a strict vigil over the deals and transactions in order to stave off the scams and irregularities.

In addition, the Central Bank also issued a notification to all the private and foreign banks to appoint Chief of Internal Vigilance (CIV) officers on the lines of Chief Vigilance Officer (CVO) of public sector banks.

The banks have also been asked to review their security systems to prevent fraud crimes. RBI in the new set of rules also suggested them to keep an eye over employees working in sensitive areas of the banks such as the treasury department.

The Central Bank also recommended staff rotation for the employees working at the sensitive areas to prevent any wrongdoing that employees may be tempted for.

RBI also guided banks to watch over and take adequate steps in preventing home loan forgeries especially in case of residential assets. It also asked banks to make tougher laws to check swindling in permanent deposit schemes.

The regulator also said that in the event of a fraud, banks should immediately report to the senior officers and analyse about the extent of the fraud.

RBI’s directive on staff rotation and mandatory leave comes a few months after a multi-crore fraud involving a relationship manager at the Gurgaon branch of Citibank India came to light.

The relationship manager, Shivraj Puri, who is in police custody, was accused of defrauding clients of at least Rs 400 crore after promising them astronomical returns.

JPN/Bureau