Further, RBI also issued guidelines in May 2011 advising all the private sector banks to evolve suitable structure within their organization which would scrutinize all cases where any foul play is suspected from vigilance angle.
This mechanism is intended to ensure that reckless decisions resulting in loss – of money and reputation – to the bank – are identified and suitable action is initiated against the delinquent employees promptly and effectively. The existence of a credible and responsive vigilance system acts as an effective deterrent to disorderly conduct. 7.