The CVC(Central Vigilance Commission) has directed the banks to not provide criminals with the option of opting for a one time settlement of their dues on their loan, even if it was a home loan. The offences would continue to be probed by the investigating agencies concerned-Central Bureau of Investigation (CBI) in cases where dues are over Rs 1 crore. Prompting them for a one time payment , will invoke suspicion from the CVC who are sure about the fact that the criminals must have acquired that sum of amount illegally violating the law of the land.
Since these cases are outside the banks jurisdiction to handle, they are better left to be dealt by the CVC who are experienced in these matters.
The banker, recently have had a meeting with the CBI and CVC concerning the same issue and how the bankers could go about with one time settlement issues in order to solve the financial liability on the banks and not involve in the criminal charges of the borrower. They were successful to reach at a solution which both parties suggested that, despite giving a clean chit by the bank after the settlement has been done, the agencies should be allowed to continue the probe so as to trace as to where the accused borrower managed to accumulate the funds from and if they were legitimate sources.
Considering this joint decisions taken, IBA is set to issue guidelines to the banks about the same so that uniformity can be maintained in dealing with such cases, and also to ensure that back get their money and the investigating agencies a respite if the transactions carried out by the borrower have been legal.