The recent housing loan scam which hit the banking industry has given rise to protest against corruption across several levels of bankers. The All India Bank Employees Association (AIBEA) has decided to protest against the existing scenario and demand for considering wilful loan default as cognisable offence.
AIBEA has planned to conduct rallies in Reserve Bank of India as well as Parliament in protest against corruption existing in the top level of banking system.
"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. He added that during the protests, the demand will also be given focus.
The demand for bringing amendment in IPC had been placed by AIBEA earlier too. "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.
He said that these loans become default ones, under go rescheduling and finally end up being in the category of wilful loan default. "Finally, such loans are hardly recovered and they are written off from the bank books," said Utagi.
He said that the loan default in India currently amounts to more than Rs 3.5 lakh crore.
"Finally, such loans are hardly recovered and they are written off from the bank books," said Utagi.