SBI MD Arijit Basu bats for greater oversight on banks

New Delhi: There is a need for greater oversight on banks, but overreach by probe agencies must be avoided, SBI Managing Director Arijit Basu said on Thursday.

"When you are working with public money you need to be overseen and you have to have a Central Vigilance Commission or a Central Bureau of Investigation, but there should not be overreach. I think the government also in the recent past has taken a lot of measures to assure the bankers," Basu said.

With a view to protect prudent decision making of bankers, the government last month took a slew of decisions, including doing away with personal responsibilities of MD and CEO of public sector banks (PSBs) for compliance in dealing with large value frauds committed by bank officials.

Considering the complexities involved in the commercial decisions of managers in public sector firms, the Central Vigilance Commission set up the Advisory Board for Banking and Financial Frauds (ABBFF) for a mandatory first level examination on suspected frauds in excess of Rs 50 crore, involving public servants of GM rank and above, before investigations begin.