RBI said with these measures all issues arising out of lapses in the functioning of the private sector and foreign banks especially relating to corruption, malpractices, frauds etc can be addressed uniformly by the banks for timely and appropriate action.
In its guidelines, RBI asked the banks to appoint an officer of suitable seniority to be designated as chief of internal vigilance with functions divided into three key core areas such as preventive vigilance; punitive vigilance; and surveillance and detection.
The wide ranging functions of the CIV would include collecting intelligence about the corrupt practices committed, or likely to be committed, by the employees of the organization.
As per the guidelines, the CIV would also be empowered to investigate into verifiable allegations reported to him; processing investigation reports for further consideration of the disciplinary authority concerned; referring the matters to the CEO of the bank for advice wherever necessary and taking steps to prevent commission of improper practices/misconducts.
The central bank said the normal tenure of a CIV would be three years extendable up to a further period of two years.
But if a CIV has to shift from one bank to another without completing the approved tenure in the previous bank, the principle of overall tenure of six years will apply, RBI added.
