CVC Reconstitutes Advisory Board For Banking & Financial Frauds

The members of the board are Ravikant, a former Secretary of the Department of Ex-Servicemen Welfare; Rajni Kant Mishra, a former Director General of the BSF; Alok Kumar Choudhary ex-MD of SBI and Sarada Kumar Hota, former MD, National Housing Bank.

The CVC, in consultation with the RBI, re-constituted the ABBFF with effect from August 21, 2025 for two years, its notification dated August 19 said.

As per terms of appointment, the Chairman and members of ABBFF are eligible for re-appointment, subject to
the condition that the total period of appointment as Chairman and/or member shall not exceed 4 years or 70 years of age, whichever is earlier, it said. 

The ABBFF will examine the role of all levels of officials and whole-time directors (including ex-officials and ex-whole-time directors) in public sector banks, public sector insurance companies and public sector financial institutions in case of frauds amounting to Rs 3 crore and above, it said.

"All public sector banks, public sector insurance companies and public sector financial institutions shall refer all matters of frauds involving sums of money of Rs 3 crore and above to the board... for advice before initiation of criminal investigation and the competent authority shall consider the advice tendered by ABBFF regarding involvement of criminality/malafide of the officials, in all such cases," said the order, dated August 19.

It said that "all public sector banks, and public-sector financial institutions shall ensure that the advice of the board has been sought, received and made available in case of frauds amounting to Rs 3 crore and above, to the investigating agencies, who may take the advice of the board into account while taking consequential actions in such cases".

The CVC or the CBI can also refer any case or technical matter to the Board for its advice, the order stated.

The ABBFF may also periodically carry out fraud analysis in the financial system and give inputs, if any, for policy formulation related to the frauds, to RBI and CVC, it said.

The ABBFF may ordinarily, within a month of receipt of the initial reference, tender its advice as may be requisitioned by the Ministry/Department/CVC or the investigating agency (including the Delhi Special Police Establishment), it said. 

It shall keep the Commission and RBI informed about its performance and activities on a quarterly basis, it added.

In case a member of the ABBFF is associated as non-executive independent on boards of other entities, then they shall not be involved with any proposal where these entities are part of proposals placed before the ABBFF.