Bank unions oppose RBI's decision to allow compromise settlement for wilful defaulters

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.

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