Fraud loans: Billions of depositors will sink if banks don't plan tightly

- Antenna: Vivek Mehta

- Banks have to be careful that the new system of sale of fraudulent loans does not become an easy exit route for those who exit the bank.

Bank fraud is on the rise. Only bank officials validate documents of property or goods with false valuation. Also accepts the high value of older purchased machinery. Large amounts of loans are given to the trading industry based on its high value. This type of loan is also considered a fraud loan. But when it actually becomes an NPA, bank officials call it party dishonesty. They do not show the kickback taken by the party then. He also publicly blames the party for this collusion with the party. This is the reality of today's bank. So the bank's non-performing assets have increased.

Fraud loans are now allowed to be sold to banks and asset reconstruction companies. The Reserve Bank has taken this decision. A positive step has been taken with this decision of the Reserve Bank. Officers who are in the job after giving a fraudulent loan from a bank will also be held responsible for it. However, it has not been clarified whether the officers who retired by giving fraudulent loans will be deprived of its benefits. If the fraud is to be stopped and the retired officers responsible for the fraudulent loan are also held accountable and their retirement benefits are withdrawn and exemplary punishment is given, then the officers who give fraudulent loans in collusion with fraudulent loan takers will consider seven times during the tenure of the bank.

In these circumstances, banks should also be instructed to prepare comprehensive guidelines for fraudulent loan transfers. The Reserve Bank has also made it a condition for banks to report fraudulent loans on a regular basis. The loan must have been NPAed when it was handed over to an asset reconstruction company. This type of loan will also have to be constantly monitored. It will also have to prepare a report and put it in the bank. A complaint will also have to be lodged against him. The complaint and the legal proceedings initiated in its investigation will also have to be transferred to the Asset Reconstruction Company. However, once the asset reconstruction company is liable for the fraudulent loan, the liability of the bank transferring the loan will not be fulfilled. Its maximum and minimum standards will also have to be determined. This has to be decided with a lot of understanding. Details, including valuation of the property mortgaged against the fraudulent loan, must be stored separately. This data will also have to be observed periodically. Also, the entire system from which the fraud loan is transferred to the asset reconstruction company has to be prepared. The bank will also have to decide how much premium to keep for the risk of non-repayment of the loan. Standards will also have to be set for it. The fraudulent loan must be auctioned off even after negotiations have taken place to give the asset to the Reconstruction Company. Doing so will yield better value. Otherwise, in collusion with the asset reconstruction company, the borrowers will purchase their outstanding loan at a lower price and then arrange for the same to be repaid from the asset reconstruction company in another person's name. If that happens then it will be easier for banks to apply lime. The National Company Law Tribunal is also a ploy to get out of liability by taking a loan of billions of rupees from a bank and then filing for bankruptcy and paying Rs 55 crore against a loan of crores. The central government has also understood this fact. Let's give an example. Alok Industries owes Rs. 20,000 crore loan account through NCLT only Rs. It was settled by paying Rs 5,000 crore. In the language of banking it is known as hair cut. As a result, it is tightening the rules on reducing the amount payable from the outstanding loan amount. In this case too, the Reserve Bank has to keep the rules strict, otherwise there is no shortage of people in the country who have limed the banks.