Bank officers' union calls for naming and shaming defaulters

The All India Bank Officers Confederation (AIBOC) has alleged that most financial scams take place due to loopholes in the system and called for publishing the names of defaulters of all banks.

The union 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.

The union said that 12 nonperforming accounts have an outstanding of Rs 2.5 lakh crore, 84 per cent of the NPAs belong to corporates.

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.

It also sought immediate appointment of officer directors, employee directors and nominee directors and allow them to play a watchdog role. The union demanded the removal of RBI executives and finance ministry officials from the boards of banks.

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.

Further, the confederation said that the banks will have to declare additional Rs 2 lakh crore as NPAs and make 50 per cent provision for them, which will pose risk for all the banks in the country, it said.