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Vittal presses for vigilance panel ordinance, bank computerisation

Chief Vigilance Commissioner N Vittal urged the Union government to promulgate ordinance related to Central Vigilance Commission and stressed the need for overall computerisation of all banks in line with the global trend.

N Vittal said in Bombay today, before launching Winbank, a useful software product for the banking sector, that the earlier ordinance expired in April 1999. According to an earlier order of the Supreme Court and in line with the earlier ordinance, present government can pass another ordinance restoring the authority of the CVC.

He said the need for computerisation of bank arises from two factors: one is to ensure that banks are able to serve their customers better and thus face the competition, which will become increasingly severe, and the other is the need to protect the banking system from its internal weakness like the poor system of reconciliation of accounts which provides the fertile ground for frauds and corruption.

He said that after taking over as the chief vigilance commissioner, one of the steps taken by him was to issue an order under Section 8 (1) of the CVC Ordinance 1998 to the effect that at least 70 per cent of the business of banks must be computerised before 2001.

This has been done in consulation with all concerned, the Reserve Bank of India and the Indian Banks Association.

He suggested that banks should consider undergoing a litmus test of having being able to clear all oustation cheques within the same day all around the country.

This should be the target of the banks, considering its computerisation, else the idea behind it would fail, Vittal said.

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