Bank unions AIBOC and AIBEA have opposed the Reserve Bank's move to allow lenders to settle loans of wilful defaulters under compromise settlement.
The RBI’s recent 'framework for compromise settlements and technical write-offs' is a detrimental step that may compromise the integrity of the banking system and undermine the efforts to combat wilful defaulters effectively, unions said in a joint statement.
"As key stakeholders in the banking industry, we have always advocated for strict measures to address the issue of wilful defaulters," All India Bank Officers’ Confederation (AIBOC) and All India Bank Employees Association (AIBEA) said in a statement.
