Banks Form A Panel Led By An Ex-CBI Director To Protect Top Executives

In a significant development, banks have initiated measures to address cases against lenders under the Prevention of Corruption Act by establishing a panel headed by former Central Bureau of Investigation (CBI) special director DC Jain. The creation of this panel comes amid mounting pressure from banks seeking protection for their top executives against arbitrary arrests or actions related to commercial decisions, particularly loan grants. This move follows discussions with the government and underscores the industry’s efforts to navigate legal challenges. Furthermore, recent events, including the arrest of former SBI chairman Pratip Chaudhuri and the scrutiny surrounding the arrest of former ICICI Bank MD Chanda Kochhar, highlight the urgency for clarity and safeguards in such cases. The committee’s findings are anticipated to influence decisions regarding the extension of protections under the Prevention of Corruption Act, ultimately shaping the regulatory landscape for the banking sector. Indian Banks Association (IBA) CEO Sunil Mehta has confirmed the formation of the committee, indicating its focus on devising effective strategies.