India's Central Vigilance Commission issues master circulars on vigilance administration and disciplinary action

The Central Vigilance Commission (CVC) has released Master Circular No. 07/MC/2026, consolidating all earlier guidelines on vigilance administration for Public Sector Banks, Public Sector Insurance Companies and Public Sector Financial Institutions. Effective immediately, the circular supersedes previous instructions and provides a single reference framework, defines the "vigilance angle" for misconduct, mandates three‑member Internal Advisory Committees, expands the role of Chief Vigilance Officers, and emphasizes preventive measures such as stronger internal controls, cyber security awareness and whistle‑blower mechanisms. It also directs sponsoring banks to strengthen vigilance in Regional Rural Banks and outlines reporting thresholds for fraud cases.

In a separate issuance, the CVC issued Master Circular No. 08/MC/2026 on "Timely Initiation and Finalisation of Disciplinary Action". This circular consolidates and updates earlier procedural guidelines, establishing model timelines for investigations, aiming to reduce delays, ensure uniform processing of vigilance cases and prevent bias. It supersedes all prior directives and is available on the CVC website under the publications section.