Officials in the state-run banks should take adequate precautions to document reasons for any decision they take, chief vigilance commissioner TM Bhasin said at the Gyan Sangam on Friday.
According to bankers who attended the session, Bhasin listed out the precautions and said the documentation would help them avoid trouble if they are deviating from rules. This piece of advice comes at a time when the Economic Survey has pointed out inefficiency of a large number of vigilance officers employed by the government.
“The vigilance officer system is widely felt to be ineffective and in some cases even counter-productive. It may be time to consider whether the costs of this elaborate, but apparently ineffective, system are worthwhile,” it said.
PSBs have been saying their performance should not be compared with private sector banks because of severe scrutiny they face reducing their risk appetite. While PSBs are under the scrutiny of the CVC and are also under the ambit of the right to information (RTI) act, their private peers are not.
Meanwhile, seeking participation in the Gyan Sangam, members of the AIBOA protested near the entrance of State Bank Academy in Gurgaon, the venue for the second edition of the bankers retreat.