RBI be empowered to publish the list of defaulters owing more than Rs 1 crore: AIBEA

AIBEA has created a list of demands related to loan defaulters and Government’s holding in PSBS, which it plans to present at the Union Budget in 2018.

All India Bank Employees Association image
The All India Bank Employees' Association (AIBEA) has put forth a list of demands related to loan defaulters and Government’s holding in public sector banks. Among other things, the association has demanded that the Centre empower the RBI to publish the list of defaulters who owe the banks more than Rs 1 crore. The association plans to present the list at the next Union Budget.
The association has also demanded that an updated deafulters' list should be published every six months. Wilful defaulters should be prohibited from contesting local, legislative or Parliamentary elections. Those holding high office should be asked to demit.
Fast-track courts should have more powers to recover bad loans and stringent laws enacted to ensure more recovery. Asset reconstruction companies should be closed down and focus should be on recoveries.
Laws should be amended to confiscate the assets of directors in case of default by a company.Managing Directors & CEOs/ Managing Directors/ Executive Directors of public sector banks should be made accountable and responsible in respect of sanction of credit that ultimately gets categorised as distressed assets/quick mortality cases.
There should be periodical reviews to identify persons whose debts/ loans have been written off with interest. Corporate houses raising external commercial borrowings should be monitored to check if rules have been adhered to.
Wilful default should be declared a criminal offence through suitable amendment of laws. More debt recovery tribunals and fast-track courts need to be set up to recover high-volume bad loans.
The government should hold full control of public sector banks with 100 per cent equity holding and should not disinvest from them. It should ensure adequate capital with hassle-free infusion to help these banks tide over the immediate crisis.
Source: The Hindu Business Line

Add new comment