In view of an alarming rise in the number of bank fraud cases, the central bureau of investigation (CBI) is developing a sophisticated information system to help an embattled banking industry. The system, called ‘Bank Case Information System’ (BCIS), will contain details of accused persons, borrowers and public servants to help the agency in case of a fraud.

Addressing the 4th annual conference of CVOs of public sector banks/financial institutions and CBI officers, CBI director Amar Pratap Singh stressed on the need to plug existing loopholes to ensure that lending and borrowing took places in a healthy and fraud-free environment. Singh added that once the protocol is worked out, this information may be made available to field functionaries of the banking sector in collaboration with the Indian bank association (IBA).

The banking sector has incurred losses amounting to Rs 3,799 crore in 2010-11 as opposed to Rs 2,017 crore in 2009-10 due to fraud. The CBI’s bank securities & fraud cell has already registered fraud cases amounting to Rs 2,500 crore from January to July this year.

As per the revised threshold limit notified by the CVC, CBI will now only register bank fraud cases involving loss of over Rs 3 crore. Frauds involving loss of below Rs 3 crore will be reported to state police. Clarifying that the agency’s role is only to investigate criminality in bank frauds such as cheating, criminal conspiracy, forgery, concealment, abuse of official position, Singh said that the bank often files a complaint with the CBI to put pressure on an erring client but refuses to co-operate thereafter. 

The conference discussed important issues relating to role of third parties in bank financing, complaints, investigation & RDA, trial & prosecution and coordination.