The recently unearthed cash-for-loan scam will soon give rise to a massive campaign against corruption at the top level in the banking industry, with one demand being to make willful loan default as cognisable offence.
The All India Bank Employees Association (AIBEA) has planned rallies at the Reserve Bank of India (RBI) and Parliament to protest against prevailing corruption at the top level in the banking industry.
“There should be an amendment in the Indian Penal Code (IPC) to make willful loan defaults by top borrowers a cognisable offence,” said Vishwas Utagi, secretary, AIBEA, adding that during the protests, this demand would be highlighted.
The AIBEA had earlier, too, demanded the amendment in IPC. When contacted, a RBI spokesperson said she would have to check the latest position on the issue. “AIBEA has always fought and campaigned against corruption at the top level and we have also exposed a nexus between bankers, borrowers and politicians in grabbing big loans from the banks and insurance companies,” added Utagi.
Utagi said such corporate loans ultimately become bad loans, which are frequently rescheduled and then end up in becoming willful loan default. “Finally, such loans are hardly recovered and they are written off from the bank books,” said Utagi. As of today, the loan default amount in the country stands at over Rs 3.5 lakh crore, he added.
To highlight the issue, in the wake of the cash-for-loan scam, AIBEA has planned a rally at Parliament on February 23 next year, in which other trade unions would also participate. “We are also planning a rally at RBI and the date would be decided soon,” said Utagi.