Lok Sabha Question No. 3020 (UNSTARRED), answered on 2018-01-05
Subject: Corruption in Banking System
Ministry: FINANCE
Asked by: SADASHIV KISAN LOKHANDE

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

LOK SABHA UNSTARRED QUESTION NO. 3020

TO BE ANSWERED ON THE 5 TH  JANUARY, 2018/ PAUSHA 15, 1939(SAKA)

## Corruption in Banking System

## 3020. SHRI SADASHIV LOKHANDE :

Will the Minister of FINANCE be pleased to state:

- (a)  whether  Central  Vigilance  Commission  (CVC)     identified  corruption  cases  in working of banking system during the last three years;
- (b) if so, the details thereof, bank-wise;
- (c) the number of cases registered in this regard, bank-wise; and
- (d)  the  steps  being  taken/proposes  to  be  taken  by  the  Government  to  stop  such corruption?

## ANSWER

## THE MINISTER OF STATE IN THE MINISTRY OF FINANCE ( SHRI SHIV PRATAP SHUKLA)

(a) to (c): Central Vigilance Commission (CVC)has intimated that the Commission is not  an  investigative  agency,  though  it  may  refer  certain  cases  to  CBI  and  other investigation agencies for investigation.   Bank-wise details of cases during the last three years viz., 2015, 2016 and 2017, where the Commission tendered its advice for sanction for prosecution of Public Sector Banks(PSBs) officers/officials involved in  corruption  cases  under  the  Prevention  of  Corruption  Act  1988,  is  enclosed  at Annexure.

(d): The Central Government is fully alive and committed to implement its policy of 'Zero  Tolerance  against  Corruption'  and  has  taken  several  measures  to  combat corruption. These, inter-alia, include:

-  Issue of Instructions by the CVC asking the organizations to adopt Integrity Pact in major procurement activities;
-  Ratification of the United Nations Convention against Corruption (UNCAC) in 2011;
-  Setting  up  of  additional  Special  Courts  exclusively  for  trial  of  CBI  cases  in different states.

Further,  CVC  guidelines  are  conveyed  to  all  the  PSBs  from  time  to  time  for their  meticulous  compliance  in  the  matter.PSBsregularly  monitor  their  Systems  & Procedures,  Guidelines,  Policies&  Technology  to  incorporate  suitable  checks  & balances  in  the  system  to  curb  corruption.PSBs  have  a  Board  approved  Staff Accountability  Policy  and  regulations  for  taking  action  against  officials  involved  in irregularities.

- *****

## Annexure

Bank-wise details of prosecution sanction cases under PC Act. 1988 issued during 2015, 2016, and 2017.

## 2015

| S.No   | Name of Bank              |   No. of cases |
|--------|---------------------------|----------------|
| 1.     | Canara Bank               |              1 |
| 2.     | Bank of India             |              1 |
| 3.     | State Bank of India       |              3 |
| 4.     | Indian Overseas Bank      |              1 |
| 5.     | Oriental Bank of Commerce |              1 |
| 6.     | UCO Bank                  |              1 |
| 7.     | Union Bank                |              1 |
| 8.     | United Bank of India      |              2 |
|        | Total                     |             11 |

## 2016

| S.No   | Name of Bank              |   No. of cases |
|--------|---------------------------|----------------|
| 1.     | Corporation Bank          |              2 |
| 2.     | Punjab National Bank      |              2 |
| 3.     | State Bank of India       |              1 |
| 4.     | Indian Overseas Bank      |              1 |
| 5.     | Oriental Bank of Commerce |              1 |
| 6.     | UCO Bank                  |              1 |
| 7.     | United Bank of India      |              1 |
|        | Total                     |              9 |

## 2017

| S.No   | Name of Bank          |   No. of cases |
|--------|-----------------------|----------------|
| 1.     | Central Bank of India |              2 |
| 2.     | Punjab National Bank  |              3 |
| 3.     | Bank of India         |              1 |
| 4.     | Bank of Maharashtra   |              1 |
| 5.     | Andhra Bank           |              1 |
| 6.     | United Bank of India  |              2 |
|        | Total                 |             10 |