Lok Sabha Question No. 328 (STARRED), answered on 2017-03-24
Subject: Fake Appointment in Banks
Ministry: FINANCE
Asked by: CHANDRAKANT BHAURAO KHAIRE, HARISHCHANDRA DEORAM CHAVAN

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF FINANCIAL SERVICES

## LOK SABHA

## STARRED QUESTION NO.†*328

TO BE ANSWERED ON 24 th  MARCH, 2017/ CHAITRA 3, 1939(SAKA)

## Fake Appointment in Banks

## Question

†*328:  SHRI CHANDRAKANT KHAIRE: SHRI HARISHCHANDRA CHAVAN:

Will the Minister of FINANCE be pleased to state:

- (a) whether the Government is aware of some appointments made in the banks on the basis of furnishing fake certificates in connivance with the bank officials/staff and if so, the details thereof;
- (b) whether the Government has conducted any inquiry in such cases and if so, the details thereof and if not, the reasons therefor;
- (c)  whether any mechanism exists in the banks to prevent fraudulent appointments and if so, the details thereof; and
- (d) the corrective steps taken by the Government in this regard?

## ANSWER

## The Finance Minister (Shri Arun Jaitley)

(a) to (d):  A Statement is laid on the Table of the House.

## 8 th  Position

LOK SABHA STARRED QUESTION NO.†*328 FOR ANSWER ON THE 24 TH MARCH, 2017 REGARDING 'FAKE APPOINTMENT IN BANKS'TABLED BY SHRI CHANDRAKANT KHAIRE&SHRI  HARISHCHANDRA  CHAVAN  MEMBERS  OF PARLIAMENT.

(a) to (d): Public Sector Banks(PSBs) have managerial autonomy in  recruitment of officers, clerical and sub-staff. Four PSBs have reported cases of fake certificates being submitted at the time of appointment. The details are annexed .

PSBs  make  offer  of  appointment  subject  to  verification  of the eligibility and identity of the candidate and supporting documents.  In  case  of  doubts/discrepancies,  PSBs  refer  the matter to concerned issuing authority and if such certificates are found  to  be  fake,  then  the  appointment  of  such  candidates  is terminated.  To  check  incidents  of  impersonation,  a  biometric authentication  process  has  also  been  introduced  by  Institute  of Banking  Personnel  Selection,  which  conducts  the  recruitment process on behalf of PSBs, other than State Bank of India.

******

## Annexure

|   S. No. | Name of PSB               |   Number of cases involving fake certificates | Nature of fake certificate         | Number of bank officials/staff involved   |
|----------|---------------------------|-----------------------------------------------|------------------------------------|-------------------------------------------|
|        1 | Oriental Bank of Commerce |                                             4 | Caste Certificate                  | Nil                                       |
|        2 | Indian Overseas Bank      |                                           253 | Qualification/ Service Certificate | 89                                        |
|        3 | Bank of Baroda            |                                            30 | Caste Certificate                  | Nil                                       |
|        4 | Andhra Bank               |                                            28 | Caste Certificate                  | Nil                                       |

## NOTE  FOR  PAD

INDEX 8 TH   POSITION

## LOK SABHA STARRED QUESTION NO.†*328 ON THE 24 TH  MARCH, 2017

| Sl.No.                                               | Subject                                                                                                                                                   | Page No.                                             |
|------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------|
| 1.                                                   | Details of Question and Reply                                                                                                                             | 1-3                                                  |
| 2.                                                   | Information about Hon'ble Member of Parliament                                                                                                            | 5                                                    |
| List of possible Supplementary questions and answers | List of possible Supplementary questions and answers                                                                                                      | List of possible Supplementary questions and answers |
| 1.                                                   | What are the total number of employees in Public Sector Banks?                                                                                            | 6                                                    |
| 2.                                                   | How is recruitment done in PSBs?                                                                                                                          | 6                                                    |
| 3.                                                   | What is Institute of Banking Personnel Selection (IBPS)? What is the role of IBPS?                                                                        | 6-7                                                  |
| 4.                                                   | Has Managerial Autonomy been given to PSBs in matter of recruitment?                                                                                      | 7                                                    |
| 5.                                                   | What is the status of recruitment made by PSBs in last 3 years?                                                                                           | 8                                                    |
| 6.                                                   | What is status of reservation in recruitment?                                                                                                             | 8                                                    |
| 7.                                                   | What are the Bank-wise details of the appointments made in PSBs on the basis of furnishing fake certificates in connivance with the bank officials/staff? | 8                                                    |
| 8.                                                   | What is the present status of cases involving appointments through fake certificates in PSBs?                                                             | 9                                                    |
| 9.                                                   | What is the number of Officers/staff involved in appointment through fake certificates?                                                                   | 9                                                    |
| 10.                                                  | What are the cases appointed on the basis of fake certificate in Oriental Bank of Commerce?                                                               | 10                                                   |
| 11.                                                  | What are the cases appointed on the basis of fake certificate in Bank of Baroda?                                                                          | 10                                                   |
| 12.                                                  | What are the cases appointed on the basis of fake certificate in Indian Overseas Bank?                                                                    | 11                                                   |
| 13.                                                  | What are the cases appointed on the basis of fake certificate in Andhra Bank?                                                                             | 11                                                   |
| 14.                                                  | What are the mechanisms that exist in the banks to prevent fraudulent appointments?                                                                       | 12                                                   |

| Annexure   | Subject                                     | Page No.   |
|------------|---------------------------------------------|------------|
| I          | Managerial Autonomy for Public Sector Banks | 13-19      |
| II         | Number of fake certificates in PSBs         | 20         |

## Information about Hon'ble Member of Parliament

## SHRI CHANDRAKANT KHAIRE, MP

Shri Chandrakant Khaire is a Member of Parliament in Lok Sabha from the State of Maharashtra. He belongs to Shiv Sena. He is B.Sc. (1 st Year), Diploma in Personnel Management from Marathwada University, Aurangabad.

## SHRI HARISHCHANDRA CHAVAN, MP

Shri  Harishchandra  Chavan  is  a  Member  of  Parliament  in  Lok Sabha  from  the  State  of  Maharashtra.  He  belongs  to  Bhartiya Janata Party. He is Bachelor of Art in English Literature from K.G. Joshi College, Thane, Maharashtra.

******

## List of Possible Supplementary Questions

## Ques.1 What  are  the  total  number  of  employees  in  Public Sector Banks?

## Ans. The category-wise employees in PSBs are as under:

(as on 31.12.2016)

| Category   | Employees   |
|------------|-------------|
| Officers   | 4,02,907    |
| Clerical   | 3,13,297    |
| Sub-staff  | 1,49,142    |
| TOTAL      | 8,65,346    |

## Ques.2 How is recruitment done in PSBs?

Ans. PSBs  have  managerial  autonomy  in  matters  related  to Human  Resources  (HR)  including  recruitment. Accordingly  PSBs make  their assessment  and  give  indent to Institute of  Banking Personnel Selection (IBPS) for provisional allotment.   IBPS  conducts Online Common  Written  Examinations  (CWEs),  declares results, provides support for conducting common interviews, compiles results and carries  out  provisional  allotment  based  on  merit  cum  preference subject  to  availability.   Subsequently  PSBs  do  the  final  appointment after  completing  the  pre-appointment  formalities  i.e.  verification  of testimonials and medical examination etc.

## Ques.3 What  is  Institute  of  Banking  Personnel  Selection (IBPS)? What is the role of IBPS?

Ans. The IBPS is a public trust registered under the Bombay Public Trust Act, 1950 and also the Societies Registration Act, 1860. It is not a  statutory  body  established  under  a  specialised  legislation.  It  is completely Autonomous Body which specialises in conducting screening examination for the recruitment of personnel to banks and other organizations.

IBPS is a test conducting agency, acting as per mandate given by the participating banks/organization to facilitate selection of suitable candidates for filling up the reported vacancies.

In the year 2010, Government agreed to the proposal of IBA to conduct common examination for all Nationalized Banks through IBPS. Since  then,  IBPS  has  conducted  four  recruitment  process  for  the Banks so far.

On receipt of the mandate from participating banks/organizations,  IBPS  initiates  Common  Written  Examination  for POs/MTs  and  Clerks  by  issuing  an  advertisement/  notification  in  its public  domain  i.e  IBPS  website  containing  detailed  information  about the guidelines/instructions/terms and conditions for participating in the CWE  recruitment process. The advertisement also published in Employment News and Window advertisement was given in prominent newspaper publication of all states all over India.

The  final  recruitment/appointment  of  the  provisionally  allotted candidates  is  given  by  the  participating  organization  based  on  their terms and conditions and requirements.

## Ques.4 Has  Managerial  Autonomy  been  given  to  PSBs  in matter of recruitment?

Ans. The PSBs  have  been granted additional managerial autonomy vide letter  dated  22.02.2005 (Annexure-I) .  In  terms  of  the managerial  autonomy  granted  to  the  PSBs  by  the  Government,  they enjoy full operational and managerial autonomy which includes framing of  their  own  'Human  Resources'  policies  and  procedures  within  the broad guidelines issued by Government from time-to-time.  The banks with  the  approval  of  their  respective  Boards  can  design  appropriate policies in the matter, from time to time.

## Ques.5 What  is  the  status  of  recruitment  made  by  PSBs  in last 3 years?

Ans. The  details  of  recruitment  made  in  PSBs  in  last  three years are as under:

| Year                                 |   Officers |   Clerical cadre |   Sub-staff |   Total |
|--------------------------------------|------------|------------------|-------------|---------|
| 2013-14                              |      31911 |            43434 |       14793 |   90138 |
| 2014-15                              |      27333 |            25199 |       12722 |   65254 |
| 2015-16                              |      25342 |            33175 |        7570 |   65997 |
| 2016-17 (Estimated as on 31.12.2016) |      25789 |            44210 |       10208 |   80207 |

## Ques.6 What is status of reservation in recruitment?

Ans. Reservation in recruitment in PSBs is provided as per the Government guidelines as follows for officers.

Scheduled Castes (SC) :

15%

Scheduled Tribes (ST) :

7.5%

Other Backward Classes (OBC) :

27%

Apart  from  the  above,  there  is  reservation  within  the  existing reservation for physically handicapped persons as under:

Blindness or low vision (VI) :

1%

Hearing Impaired (HI) :

1%

Locomotor disability

or cerebral palsy(OC) :

1%

Apart from the above, the reservation in recruitment Ex-servicemen for clerical and sub-staff cadre in Bank is as under:

Disabled Ex-servicemen/

Dependents of servicemen killed in action :

4.5%

Ex-servicemen (in clerical cadre) :

10%

Ex-servicemen (in sub-staff cadre) :

20%

## Ques.7 What  are  the  Bank-wise  details  of  the  appointments made in PSBs on the basis of furnishing fake certificates?

Ans. A bank-wise statement is at Annexure-II

.

of

## Ques.8 What is the present status of cases involving appointments through fake certificates in PSBs?

Ans. The present status of the cases is as under:

|   S. No. | Name of PSB               |   Number of cases found with fake certificates | Nature of fake certificate        | Action taken/Status of the cases                                                                                                                            |
|----------|---------------------------|------------------------------------------------|-----------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------|
|        1 | Oriental Bank of Commerce |                                              4 | Caste Certificate                 | All the 4 cases are Sub- Judice at High Courts ( Madras, Mumbai, Hyderabad) /apex court                                                                     |
|        2 | Indian Overseas Bank      |                                            253 | Qualification/Service Certificate | Major penalty proceeding initiated. Out of 253: 148 - Terminated for fake education qualification certificate 105 - Terminated for fake service certificate |
|        3 | Bank of Baroda            |                                             30 | Caste Certificate                 | Cases referred to Vigilance Committee/subjudice in High/Civil Courts.                                                                                       |
|        4 | Andhra Bank               |                                             28 | Caste Certificate                 | Cases referred to Issuing Authority/District Collectors.                                                                                                    |

## Ques.9 What  is the number  of  Officers/staff involved  in appointment through fake certificates?

Ans. No Public Sector Bank other than Indian Overseas Bank has reported involvement of bank officers/staff in appointment through fake certificates. The details are as under:

| Name of the Bank     | Category   |   Number |
|----------------------|------------|----------|
| Indian Overseas Bank | Officer    |       80 |
|                      | Clerk      |        9 |
|                      | Total      |       89 |

## Ques.10 What  are  the  cases  appointed  on  the  basis  of  fake certificate in Oriental Bank of Commerce?

Ans. Oriental Bank of Commerce has reported as under:

- (i) There  are  4  cases  involving  fake  caste  certificate.  Bank  had started disciplinary/departmental inquiry against all employees.
- (ii)      At present all the cases are sub-judice in the High Courts.
- (iii) No Bank officer/staff is involved in these four cases.
- (iv) The detail of joining and detection of cases are under:

|           |   Date of joining |   Detected in the year |
|-----------|-------------------|------------------------|
| 1 st case |              1983 |                   2001 |
| 2 nd case |              1984 |                   2003 |
| 3 rd case |              1986 |                   2006 |
| 4 th case |              1986 |                   2007 |

## Ques.11 What  are  the  cases  appointed  on  the  basis  of  fake certificate in Bank of Baroda?

Ans. Bank of Baroda has informed as under:

- (i) There  are  30  cases  appointing  on  the  basis  of  fake  caste certificate.
- (ii) Cases are pending at the level of District Vigilance Committee/State Vigilance Committee/Various Courts.
- (iii) No Bank officer/staff is involved in these four cases.
- (iv) The detail of joining of the employees in bank is under:

|   Number of employees | Year of joining   |
|-----------------------|-------------------|
|                    13 | 1979-85           |
|                    11 | 1986-92           |
|                     2 | 1993-99           |
|                     1 | 2000              |

## 3 employees retired from service.

## Ques.12 What  are  the  cases  appointed  on  the  basis  of  fake certificate in Indian Overseas Bank?

Ans. Indian Overseas Bank has informed as under:

- (i) There are 253 cases appointing on the basis of fake certificate.
- (ii) 148 employees terminated due to submission of fake educational qualification certificate.
- (iii) 105  employees  terminated  due  to  submission  of  fake  service certificate.
- (iv) 89 Bank officers/staff are involved in appointment on the basis of fake certificate.
- (v) Appointments were made in 2010 and cases of fake certificates detected in the year 2011.

## Ques.13 What  are  the  cases  appointed  on  the  basis  of  fake certificate in Andhra Bank?

Ans. Andhra Bank has informed as under:

- (i) There  are  28  cases  appointing  on  the  basis  of  fake  caste certificate.
- (ii) Cases are pending at the level of Issuing Authority.
- (iii) No Bank officer/staff is involved in these four cases.
- (iv) The detail of joining of the employees in bank is under:

|   Number of employees |   Year of joining |
|-----------------------|-------------------|
|                     2 |              1981 |
|                     4 |              1983 |
|                     7 |              1984 |
|                     1 |              1985 |
|                     2 |              1986 |
|                     8 |              1989 |
|                     1 |              1990 |
|                     1 |              1994 |
|                     1 |              2001 |
|                     1 |              2009 |

## Ques. 14 What  are  the  mechanisms  that  exist  in  the  banks  to prevent fraudulent appointments?

Ans. The  various  check  mechanisms  in  existence  are  as under:

- i) To check incidents of impersonation, a biometric authentication process has also been introduced.
2. ii) At  the  time  of  online  exam,  the  photo  of  the  candidate  is matched  with  photo  appearing  in  the  call  letter.  Also,  the signature  of  the  candidate  matched  with  the  appearing  on the attendance sheet.
3. iii) PSBs make offer of appointment to the provisionally allotted candidates  after  verifying  the  eligibility  and  identity  of  the candidate against the original documents.
4. iv) PSBs also  verify  all  the  original  documents  at  the  time  of joining the Bank.

- v) In  case  of  doubts/discrepancies,  PSBs  refer  the  matter  to concerned issuing authority.
2. vi) If such certificates are found to be fake, then the appointment of such candidates is terminated.

*****

## Annexure-I

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## Annexure-II

| S. No.   | Bank Name                      | Number of cases with fake certificates   |
|----------|--------------------------------|------------------------------------------|
| 1        | Allahabad Bank                 | NIL                                      |
| 2        | Andhra Bank                    | 28                                       |
| 3        | Bank of Baroda                 | 30                                       |
| 4        | Bank of India                  | NIL                                      |
| 5        | Bank of Maharashtra            | NIL                                      |
| 6        | Bhartiya Mahila Bank           | NIL                                      |
| 7        | Canara Bank                    | NIL                                      |
| 8        | Central Bank of India          | NIL                                      |
| 9        | Corporation Bank               | NIL                                      |
| 10       | Dena Bank                      | NIL                                      |
| 11       | IDBI Bank Ltd                  | NIL                                      |
| 12       | Indian Bank                    | NIL                                      |
| 13       | Indian Overseas Bank           | 253                                      |
| 14       | Oriental Bank of Commerce      | 4                                        |
| 15       | Punjab and Sind Bank           | NIL                                      |
| 16       | Punjab National Bank           | NIL                                      |
| 17       | State Bank of Bikaner & Jaipur | NIL                                      |
| 18       | State Bank of Hyderabad        | NIL                                      |
| 19       | State Bank of India            | NIL                                      |
| 20       | State Bank of Mysore           | NIL                                      |
| 21       | State Bank of Patiala          | NIL                                      |
| 22       | State Bank of Travancore       | NIL                                      |
| 23       | Syndicate Bank                 | NIL                                      |
| 24       | UCO Bank                       | NIL                                      |
| 25       | Union Bank of India            | NIL                                      |
| 26       | United Bank of India           | NIL                                      |
| 27       | Vijaya Bank                    | NIL                                      |
|          | Total                          | 315                                      |