National Housing Bank, looking to verify and check the character of the officers it recruits, started the process on February 21
The billion-dollar bank fraud at Punjab National Bank (PNB) has brought back the issue of Know Your Employee norms and now even financial watchdogs are not taking any chances.
Regulator National Housing Bank (NHB), a statutory institution and wholly owned subsidiary of the Reserve Bank of India, is scouting for an employees’ credential verification agency to verify and check, among other things, the character of the officers it recruits.
The PNB bank fraud, India’s biggest till date, was publicly disclosed on February 14, and NHB started the process on February 21.
Housing finance in India is a multi-billion dollar industry, with just the affordable housing finance segment estimated at Rs 1.5 lakh crore. As a regulator for housing finance companies (HFCs), NHB is a professionally managed institution with its headquarters in Delhi and offices in Mumbai, Hyderabad, Bengaluru, Chennai, Kolkata, Lucknow and Ahmedabad.
The bank recruits officers at various levels from time to time. Depending upon the requirement of the profile, these officers may have earlier work experience.
To carry out the exercise of previous employment credentials verification as well as to check the authenticity of all educational certificates like degrees, diplomas, etc, of these officers, NHB needs to engage the services of external credential verification agency for the said purpose.
The NHB is specifically interested in verifying and checking the authenticity of all the credentials. In particular, learning and verifying the character of the candidate in the previous organisation/institution is very important, an NHB official said. A request for proposal or RFP has already been floated.
Financial institution employees can play a pivotal role in starting and stopping a fraud. While housing finance has not seen the extent of scams and frauds as witnessed in public sector banks such as PNB where branch-level employees facilitated fraudulent and unauthorised transactions worth over $1.7 billion, in 2010, there was a fake housing loan issue in India.
It was uncovered by the Central Bureau of Investigation (CBI) and led to arrests of some top-ranking officials of public sector banks and financial institutions.
MORE SCRUTINY
- National Housing Bank, looking to verify and check the character of the officers it recruits, started the process on February 21
- In this regard, a request for proposal has already been floated
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