Implementation of the Ghosh Committee Recommendations
The RBI set up a High Level Committee on Frauds and Malpractices in Banks under the Chairmanship of Shri A. Ghosh, the then Dy. Governor, to enquire into various aspects of frauds and malpractices in banks with a view to make recommendation to reduce such incidence. The Committee submitted its Report in June, 1992. The recommendations contained in the report are related to frauds and malpractices in banks.
The RBI has divided all the recommendations into four groups as under:
(i) Group-A: Recommendations, which have to be implemented by the banks immediately.
(ii) Group-B: Recommendations requiring RBI’s approval.
(iii) Group-C: Recommendations requiring approval of Government of India.
(iv) Group-D: Recommendations requiring further examination in consultation with IBA.
The RBI has summarised each of these recommendations for the purpose of reporting of their implementation by the banks, in a ‘yes’ or ‘no’ format. The RBI has also categorised these recommendations into (i) applicable to branches (ii) applicable to Controlling Offices like, Regional and Zonal Offices (some banks may have some other name for controlling offices), (iii) applicable to Head Office and (iv) applicable to Treasury Operations.
The report of the Ghosh Committee deals, mainly with the issues related to day-to-day administrative functions that take place in a bank. The main objective behind the recommendations contained in the Ghosh Committee Report is to ensure that there exists a proper system in banks to ensure the safety of assets, compliance with the laid down policies and procedures, accuracy and completeness of the accounting and other records, proper segregation of duties and responsibilities of the staff and also timely prevention and detection of frauds and malpractices.