Bank of Baroda aftereffects: CBI to engage with Indian Banks Association

In the backdrop of the Bank of Baroda Rs 6,000 crore illegal remittances case, CBI will be engaging with Indian Banks Association to have a "deep" look into economic and banking offences being reported from large number of banks and come up with preventive measures.

CBI Director Anil Sinha will be meeting heads of banks in the country at a seminar in the first week of March in Mumbai where issues related to banking frauds will be discussed.

The meeting comes in the backdrop of recent case in Bank of Baroda from where over Rs 6,000 crore were allegedly remitted to Dubai and Hong Kong under the nose of regulatory authorities by taking advantage of loopholes in the system.

During its probe, CBI found serious procedural lapses which were allegedly exploited by operators and banking officials to allow these remittances without coming into the notice of regulatory authorities.

"I have flagged the issue with the IBA people in a meeting. This year we are having a conference on economic crimes in Mumbai where IBA and other financial organisations will be there," Sinha said in a rare interaction with media.

He said the conference will be to develop "preventive measures" to check these crimes.

"We have flagged certain issues last year and Department of Financial Services issued a circular. We are going to be confabulating over this and have discussions on wide-ranging issues concerning this particular topic. May be we will be able to recalibrate our responses. We are going to look at it very deeply because this matter does concern us," he said.