FinMin: Banks must immediately report red flags on top officials

• FinMin directs state-owned banks to immediately report adverse developments concerning whole-time directors and board-level officials.
• The directive follows the case of UCO Bank MD & CEO Ashwani Kumar, who remains in his post despite a CBI chargesheet.
• Kumar was charged in the Lal Sons Jewellers loan account case from his tenure at Oriental Bank of Commerce.
• Banks are now required to share all relevant information for vigilance clearance, including court directions, audit findings, and communications from investigative agencies.
• Complaints, court remarks, and agency references must be reported to the ministry immediately, and banks must maintain updated vigilance clearance status.

Why It Matters: New rules increase accountability for top bank officials, impacting financial integrity.