Lack of proper training in credit monitoring among reasons for frauds: CVC to banks

New Delhi: Probity watchdog Central Vigilance Commission (CVC) has said the lack of proper training in credit appraisal and its monitoring is one of the reasons for the occurrence of frauds, and advised banks and financial institutions to hold training programmes to prevent it.

The assertion came as part of a circular it issued on the observance of the 'Vigilance Awareness Week' from October 26 to foster awareness and promote integrity in public administration through preventive vigilance initiatives.

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This year, the Vigilance Awareness Week would be observed from October 26 to November 1, 2026, on the theme of ‘Probity for Prosperity’, said the CVC’s circular dated August 3.

In this regard, the commission has advised all organisations to undertake a three-month preventive vigilance campaign from August 17 to November 16 with a focus on the "disposal of pending complaints", "disposal of pending cases", "capacity building programs", "digital initiatives" and "contract management", it said.

Giving details on the capacity building programme initiative, the CVC said that the Advisory Board for Banking and Financial Frauds (ABBFF) has prepared a report “Modus Operandi and Root Cause Analysis of Frauds” (inclusive of 20 case studies).

"ABBFF has observed that lack of proper training in credit appraisal and credit monitoring is one of the reasons for the occurrence of frauds. Public sector banks and financial institutions may hold training programmes for emphasising these aspects through these case studies," it said.

All ministries/departments/organisations may ensure active participation by all concerned so that noteworthy results during the campaign period can be achieved, the circular said.

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Action taken report in respect of the aforesaid five preventive vigilance initiatives to be taken during this campaign period should be sent by all Chief Vigilance Officers to the CVC by November 30, it added.

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