RBI didn’t audit PNB properly: CVC

RBI didn’t audit PNB properly: CVC

Context

Apportioning blame to the Reserve Bank of India (RBI) over the PNB loan fraud, Central Vigilance Commissioner K.V. Chowdary on Tuesday there had been “no apparent audit” by the central bank during the period of the scam

Prelims relevant info

Central Vigilance Commission

Statutory body

• CVC was established via executive resolution of Central Government in 1964
• Its establishment was recommended by Santhanam Committee on prevention of Corruption
• Statutory status was granted to it via Central Vigilance Commission Act 2003

Membership of CVC (1 + 2)

• 1 Chief Vigilance Commissioner & not more than 2 Vigilance Commissioner
• Appointed by: President on the recommendation of a 3 member committee
• Selection Committee: PM, Leader of opposition (LokSabha), Union Home Minister
• Tenure: 4 or 65 years whichever is earlier
• Eligible for further appointment under government?: No

Who removes a CVC or VC?

President can remove a CVC or any other VC on the following grounds,

• Adjudged insolvent, or
• Convicted of an offence which in the opinion of the Central government involves a moral turpitude (A phrase used in Criminal Law to describe conduct that is considered contrary to community standards of justice, honesty, or good morals), or
• If he engages in paid employment during the term of his office
• If he, in the opinion of the President, is unfit to continue in office due to infirmity of body or mind, or
• If he has acquired such financial or other interest as is likely to affect prejudicially his official functions
• Proved misbehavior or incapacity: In this case President has to refer the matter to Supreme Court for enquiry. If, after enquiry, SC upholds the cause of removal and advises so, then the President can remove him

Salary, allowances and service conditions

Salaries, allowances and other service conditions of CVC are similar to those of chairman of UPSC & of Vigilance Commissioners are similar to members of UPSC

Working of CVC

• It has all the powers of civil court and its proceedings have a judicial character
• CVC has to present annual report on its performance to the President who places it in the Parliament
• Central Government is required to consult the CVC in making rules and regulations governing the vigilance and disciplinary matters relating to members of all-India services and central services