Bank Officers' Union challenges Govt to publish names of defaulters

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Bank Officers' Union challenges Govt to publish names of defaulters

The union has alleged that RBI and government did not plug the loopholes even when it was known that SWIFT system can be used to commit frauds.

Stung by arrests of several fellow officers in the Rs 11300 crore scam involving Punjab National Bank, the All India Bank Officers Confederation (AIBOC) has hit out at the Center challenging it to publish the names of defaulters of all the Banks.

The union of around three lakh officers in Public Sector Banks has also demanded that the banks be given liberty to write to the home ministry. If granted, the banks may request MHA that passport of directors of defaulting companies be required emigration clearance. This may help preventing their escape abroad.

AIBOC claimed that the Reserve Bank of India (RBI) is hesitating to publish the list of defaulters and allowing defaulters like Vijay Mallya, Nirav Modi and Mehul Choksi to leave the country.

11643 borrowers in the country have availed 38% of the total loans given by Banking Sector as on March 2016.

AIBOC said that 12 non-performing accounts have an outstanding of Rs. 2,50,000 crores. 84% of the NPAs belong to corporates.

According to the confederation, banks are writing off loans amounting to thousands of crores every year in favour of these corporates which in itself is major scam.

The confederation further said that the banks will have to declare additional 2 lakh crore rupees as NPAs and make 50% provision for them. According to the union this is going to create problem for all the Banks in the country.

It has demanded a relook at the NPA norms questioning the move to declare all accounts which have a default of 30 days as NPA.

AIBOC has alleged that the RBI and government did not correct the system despite it being well know that SWIFT system has been used for frauds in the nineties.