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Bankers are wary of their decisions being questioned by vigilance and investigation agencies later, and want some assurance from the regulator before implementation of the circular. Lenders have held discussions with all stakeholders, including the government, soon after the circular was published, and want additional clarity before provisions are implemented.
While some reports had said that wilful defaulters can now get a new loan after 12 months of executing a compromise settlement, the RBI said this was not the case.
Party's communications chief Jairam Ramesh issued a statement saying that 'the PM has always eagerly bent or changed rules to help his friends in a few large business groups'
The Congress party has criticized the Reserve Bank of India's (RBI) decision to allow banks to make a compromise settlement on fraud accounts and wilful defaults. Congress General Secretary Jairam Ramesh has demanded that the RBI immediately repeals its instructions, stating that the new rules mean wilful defaulters who have run away with public money are receiving a "clean chit". The Congress party has claimed that banking frauds have risen 17-fold under the current Modi government.
Addressing a press conference at the AICC headquarters here, AICC secretary Vineet Punia and Congress leader Amitabh Dubey said the financial burden on this country from fraud and wilful defaults has been severe.