Money & Banking
AIBEA criticizes RBI governor's stand on not publishing big defaulters names
Even for small loan repayment default, savers are being harassed but when it comes to industrialists, all soft options are being advocated, the bank employees union says
 
The All India Bank Employees Association (AIBEA) has criticised Reserve Bank of India (RBI) governor Dr Raghuram Rajan's statement about not publishing names of bank defaulters. "We are unable to reconcile ourselves to the view that publication of the name of the defaulters would defame them or result in loss of business for them because in the case of education loan, jewel loan, tractor loan, etc. no such considerations are being shown for the common man who takes such a loan. Even for credit card loan repayment default, the people are being harassed. Recently, a borrower of tractor loan in Tamilnadu was beaten by police and a new generation private bank was involved in this. But only when it comes to industrialists, all soft options are being advocated.  In fact they only need to be named and shamed," CH Venkatachalam, general secretary of AIBEA said in a statement.
 
While agreeing with the RBI governor that there are a variety of reasons why a project gets into trouble, the bank employee union says, "...even in such like cases where the Banks are not responsible for the same, they are forced to provide for it from the profits in the name of clean up and Banks are forced to show losses thus showing them poor light.  Why RBI cannot recommend a scheme by which such loans are treated differently and the concerned provisions are funded by the Government.  Why the Banks are made to bleed when they are not at fault for the general slowdown in the economy.  We feel that RBI should think about it."
 
AIBEA said, it fully agrees with the RBI governor that atleast the names of the willful defaulters can be publicly published. However, it said, the RBI should take the lead. "As you are well aware there are more than 5,600 wilful defaulters who together owe more than Rs60,000 crores to the Bank.  Let there be a beginning by RBI publishing these names."
 
"From AIBEA, we have also been demanding that not only their names should be published but wilful default should be defined as criminal offence and criminal action should be taken on these defaulters.  But in many cases we find that such borrowers are able to manage restructuring of their loans and escape public notice," the bank employee union said.

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COMMENTS

Ramesh Poapt

1 year ago

Clash between RBI and politics may make the PSU banks a sinking ship( bigger Titantic)! not willful n genuine defaulters is a point, 'backed' n not backed can be one! moreover,global financial tsunami is knocking doors.. wait for thrilling next few years..

SRINIVAS SHENOY

1 year ago

I fully agree with the AIBEA stand that even for default of small loans repayment like DIR loans, educational loans etc.the borrowers are harassed by using strong arm tactics, even though they are cooperative and are keen on settling the bank dues at the earliest in full. As an ex-bank official I observed that big borrowers avoided meeting us to settle their overdues. They usually get soft options, like restructuring of their overdues,from the banks'profits in the name of clean up in the books of the bank. Worse still is the position of the poor depositors in the cooperative Banks, who get lured by the high interest rates offered by these banks, and end up loosing their hard earned life savings. As usual, the big loan defaulters move around Scott free. Equity demands that to be just and fair, it is high time, that criminal proceedings are launched against such defaulters or atleast the bankruptcy proceedings initiated against these big wilful defaulters.

AG to decide whether report on Ranjit Sinha be made public
New Delhi : The Supreme Court on Wednesday asked Attorney General Mukul Rohatgi if the report on the meetings between former CBI director Ranjit Sinha and some accused in coal block allocation scam be made public.
 
The court sought the view of the Attorney General as the report by CBI's former special director M.L. Sharma was given to the court in a sealed cover. The report has details about the impact, if any, of the meetings that Sinha had with the accused on the investigations undertaken by the probe agency.
 
"The question is to what extent it (report) can be disclosed. Could it be the entire report, nothing or only the findings of the committee," the apex court coal bench of Justice Madan B. Lokur, Justice Kurian Joseph and Justice A.K. Sikri said at the outset of the hearing as it perused the report submitted to it in a sealed cover. 
 
Sharma in a 205-page report has also sought access to the preliminary enquiries (PE) undertaken by the investigating agency.
 
The apex court coal bench had appointed the CBI's former special director Sharma to inquire whether the meetings that the former CBI director Ranjit Sinha had with several accused in coal block allocation scam in any way impacted the investigations or their final outcome.
 
As the court after perusing the report by Sharma said that he was seeking access to the preliminary enquiry, Attorney General Rohatgi opposed it saying "As far as PEs are concerned I don't think it should be given."
 
"The CBI has filed PEs, it was examined by the CVC (Central Vigilance Commission) and the same has been accepted by the apex court," the AG told the bench saying that the report should not be shared with others. 
 
"There is no reason why this report is not given (disclosed) so long it does not compromise the investigation or anything else," said Counsel Prashant Bhushan appearing for the petitioner NGO Common Cause.
 
Saying that "first we have to decide if we have to give it at all or keep it to our self", the court told AG Rohatgi, "We will give you the copy of the report and you look into it and decide."
 
Saying that the report by Sharma runs into 205 pages, the court said: "After reading it, he (Rohatgi) will have a better view as to why he (Sharma) is asking for PEs."
 
Having said this, court gave the copy of the report to Attorney General Rohatgi in the court itself.
 
Meanwhile, the court said it would hear with the main matter the plea by former minister of state for coal, Santosh Bagrodia, seeking that his plea for stay of summons in the coal block allocation scam be tagged with that of former prime minister Manmohan Singh.
 
Bagrodia is seeking parity in relief with former prime minister Singh in whose case the court had stayed the summons for the allocation of 15 per cent of Talabira II Coal Block to Hindalco.
 
The apex court on April 1, 2015, had stayed the summons issued on March 11, 2015, against Manmohan Singh and Kumaramanglam Birla by the special court holding trial of coal scam cases. The court had also stayed further proceedings in the matter.
 
The matter would be heard on May 4 next.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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New hydrology project to predict floods, manage droughts
New Delhi : The Union cabinet on Wednesday gave the green signal to the National Hydrology Project (NHP) and establishment of a National Water Informatics Centre (NWIC) with a total outlay of Rs.3,679.76 crore for better flood and drought forecast.
 
The NHP is intended for setting up a system for timely and reliable water resources data acquisition, storage, collation and management. 
 
The system would improve the flood forecast time to at least three days in advance from one day at present.
 
It will also provide systems for informed decision making through Decision Support Systems (DSS) for water resources assessment, flood management, reservoir operations, drought management, etc. 
 
“The NHP will result in the improvement of data storage, exchange, analysis and dissemination through NWIC. The data can be accessed by any user at the state/district/village level,” an official informed.
 
“The automated systems for flood forecasting is aimed to reduce water disaster ultimately helping vulnerable population. It is people and farmer centric programme as information on water can help in predicting water availability and help farmers to plan their crops and other farm related activities,” the official added. 
 
Besides, the system would help map the flood inundated areas for use by the disaster management authorities.
 
The NHP will lead to better assessment of surface and ground water resources in a river basin for better planning and allocation of resources, improve reservoir operations through seasonal yield forecast and improve drought management, the official said.
 
Of the total outlay of Rs.3,679.76 crore, Rs.3,640 crore has been earmarked for National Hydrology Project while Rs.39.7674 crore has been kept aside for NWIC. 
 
Out of the total outlay, 50 percent of the amount would be World Bank loan which would be repaid by the Central government. The remaining amount would be central assistance from the budgetary support. 
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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