In a judgement that will have far reaching effects on the transparency in banking system, Supreme Court has ruled that the heads and employees of private banks will be considered public servants for the purposes of the Prevention of Corruption Act. <br/><br/>With this, the CBI will now be able to examine frauds and scams involving private banks operating in India.<br/>An apex court bench was hearing yesterday a case arising from actions of two top officials of private Global Trust Bank, who allegedly abused their position to siphon off the bank's money. <br/><br/>The bench came to the conclusion that the intent of Parliament to enact the Prevention of Corruption Act, 1988 was to widen the definition of 'public servant' so that the anti-corruption law can be made more effective. The banking sector is regulated by the Banking Regulation Act, 1949. Under Section 46A of this law, the chairman, managing director or any employee of a banking company is deemed to be a public servant for the purposes of the Indian Penal Code. <br/><br/>Referring to this section 46A, the Bench said, the definition of public servant given in the Prevention of Corruption Act should be read with Section 46A of Banking Regulation Act for the purpose of offences in the banking field.