CVC authorised to probe allegations of corruption in private sector banks

• The Central Vigilance Commission (CVC) can now probe allegations of corruption in private sector banks and against their employees.
• The Reserve Bank of India (RBI) has given the necessary approval to the CVC on this.
• The move comes after the Supreme Court last year ruled that the chairman, managing directors and other officers of a private bank could be seen as public servants when it came to the Prevention of Corruption (PC) Act, 1988.

About CVC:

• Central Vigilance Commission was set up by the Government in February, 1964 on the recommendations of the Committee on Prevention of Corruption, headed by Shri K. Santhanam, to advise and guide Central Government agencies in the field of vigilance.
• CVC is conceived to be the apex vigilance institution, free of control from any executive authority, monitoring all vigilance activity under the Central Government and advising various authorities in Central Government organizations in planning, executing, reviewing and reforming their vigilance work.
• Consequent upon promulgation of an Ordinance by the President, the Central Vigilance Commission has been made a multi member Commission with "statutory status" with effect from 25th August,1998.
• The CVC Bill was passed by both the houses of Parliament in 2003 and the President gave its assent on september 11, 2003. Thus the Central Vigilance Commission Act 2003 (No45 0f 2003) came into effect from that date.
• The Commission shall consist of: a) A Central Vigilance Commissioner – Chairperson; b) Not more than two Vigilance Commissioners - Members;

Commission’s Jurisdiction under CVC Act

• Members of All India Service serving in connection with the affairs of the Union and Group A officers of the Central Government
• Officers of the rank of Scale V and above in the Public Sector Banks
• Officers in Grade D and above in Reserve Bank of India, NABARD and SIDBI
• Chief Executives and Executives on the Board and other officers of E-8 and above in Schedule ‘A’ and ‘B’ Public Sector Undertakings
• Chief Executives and Executives on the Board and other officers of E-7 and above in Schedule ‘C’ and ‘D’ Public Sector Undertakings
• Managers and above in General Insurance Companies
• Senior Divisional Managers and above in Life Insurance Corporations
• Officers drawing salary of Rs.8700/- p.m. and above on Central Government D.A. pattern, as on the date of the notification and as may be revised from time to time in Societies and other Local Authorities

By: Vishal