Bank unions and the Indian Banks' Association (IBA) are in favour of disclosing the list of wilful defaulters so as to name and shame those who are responsible for putting the banking system under strain. While the All India Bank Officers' Association (AIBOA) says the RBI's stand of not disclosing the names of all loan defaulters makes no sense, the IBA has taken a view that the names of only wilful defaulters should be made public.
"When the names of income tax defaulters can be published by the Income Tax Department, why can't the RBI do the same in the case of loan defaulters? After all, borrowers are given loans from the deposits kept by the public in good faith with banks. Deliberately not repaying loans is equivalent to a criminal offence," said S Nagarajan, General Secretary, AIBOA.
Bank unions, IBA favour disclosing names of defaulters
By IndianMandarins - 2016-04-20 11:00:38
Bank unions and the Indian Banks' Association (IBA) are in favour of disclosing the list of wilful defaulters so as to name and shame those who are responsible for putting the banking system under strain. While the All India Bank Officers' Association (AIBOA) says the RBI's stand of not disclosing the names of all loan defaulters makes no sense, the IBA has taken a view that the names of only wilful defaulters should be made public.
"When the names of income tax defaulters can be published by the Income Tax Department, why can't the RBI do the same in the case of loan defaulters? After all, borrowers are given loans from the deposits kept by the public in good faith with banks. Deliberately not repaying loans is equivalent to a criminal offence," said S Nagarajan, General Secretary, AIBOA.
