Instances have come to the notice of State Bank, where Banks / NBFIs have appointed persons despite their involvement in fraud and forgery cases with their previous employers. This appears to be due to the non-availability of standard procedure amongst financial institutions for ascertaining the antecedents of persons seeking entry in bank / NBFI service.

2.         In order to discourage the entry of such persons in the banking industry in future, all banks / NBFIs are hereby advised to develop a standard procedure within a period of 30 days which should, interalia include obtaining of satisfactory confidential reports in writing on the integrity, suitability etc. of the applicant, from the former employer(s).