BoB forex scam effect: IBA mulls exempting experts from general banking work

New Delhi: In light of the Rs 6,100-crore Bank of Baroda (BoB) money remittance case, Indian Banks' Association (IBA) is considering a proposal to engage specialist officers only in their areas of core competencies rather than general banking business.

Specialist officers for audit, forex and credit, among others are at times roped in for general banking business due to shortage of staff, putting some specialised operations under-staffed, a senior public sector bank official said.

Following the alleged Rs 6,100-crore Bank of Baroda black money remittance case, the need was felt the lenders should have expertise in surveillance.

In a recent meeting of heads of public sector banks with Minister of State for Finance Jayant Sinha, it was decided that IBA should examine the issue of specialised talent for surveillance and analytics.

"One of the action points was that we need specialised expertise in surveillance and analytical algorithm, and IBA is working on that," Sinha had said.

Besides, he had said banks should strictly follow the benchmarking with compliance standards set by the Reserve Bank and go for organisational restructuring wherever required.

Earlier this month, CBI, SFIO, tax authorities and the Enforcement Directorate started investigation into the BoB case. It is alleged that Rs 6,172 crore black money was remitted from the bank to Hong Kong camouflaged as payments for non-existent imports of cashew, pulses and rice.

It is also alleged that amount was deposited in 59 accounts of the bank's Ashok Vihar branch in New Delhi in cash as advance for import and the money was sent to some selected companies in Hong Kong.