Preventive Vigilance in Banks

Topics: Bank, Cheque, Financial services Pages: 2 (570 words) Published: June 1, 2012

| Vigilance Administration | |VIGILANCE ADMINISTRATION IN PUBLIC SECTOR BANKS | |Vigilance administration in banks has assumed added importance these days in the wake of recent fraud case in the Citibank, Gurgaon (a | |private sector foreign bank). The gigantic proportions to which the amount has gone up beyond Rs.300 crore is mind - boggling. Needless to | |mention here that the Citibank is a bank which has international character, has well laid down systems and procedures, is totally | |technology savvy bank and there are lot of internal checks and balances. Furthermore, the fraud seems to have been committed by one | |individual employee may be in collusion with the other employees of the bank which the investigations will reveal. There is no set up in | |the Citibank (nor in any other foreign or private sector banks) on the lines of vigilance units in public sector banks set up under the | |aegis of the Central Vigilance Commission.  However, the frauds are not new to the financial sector institutions. Hence, the need to | |tighten vigilance machinery in public sector banks in India cannot be over-emphasized. The following article explains the concept of | |vigilance in public sector banks. | |The word ‘Vigilance’ means ‘watchfulness’, ‘caution’ or ‘circumspection’. Vigilance aims at preventing frauds, punishing the wrong-doers | |and protecting the innocent and honest staff members. Vigilance is an integral part of the management function. On the other hand, an | |organisation is an association of people working together for achieving certain common objectives for the benefit of the community at...
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