Feature Post

UFBU Calls Off Nationwide Bank Strike on 24th and 25th Mar 2025 After Assurances from Finance Ministry and IBA

I n a significant development on March 21, 2025, the United Forum of Bank Unions (UFBU) has decided to call off their two-day nationwide strike, which was originally planned for March 24 and 25. This decision was made after the UFBU received positive reassurances from both the Finance Ministry and the Indian Banks’ Association (IBA) regarding their key demands. The banking unions, under the umbrella body of UFBU, represent employees from nine major unions across the country, including AIBEA, AIBOC, NCBE, AIBOA, and BEFI. The unions had earlier called for the nationwide strike to protest against several ongoing issues that they believe impact the welfare and job security of bank employees. Key Issues Behind the Proposed Strike The strike was initially called by UFBU to address a range of pressing concerns, some of which have been lingering for years. The union's main demands included: Five-Day Workweek for Bank Employees:  One of the most anticipated demands was the implementation o...
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Loan Restructuring & Willful defaulter

Benchmark Parameter for Restructuring 

  • Viability - Within 5 Years
  • Repayment - Within 10 Years
  • Promoter Contribution - 20%  

Classification 

Additional Loan - Remain Standard for One Year
Existing Loan - Upgraded to Standard category after regular repayment for 1 year


Willful Defaulter - RBI Guidelines (Based on Kohli Comittee)
One who has defaulted in loan payment and 
1) he has the the capacity to pay the loan or
2) loan used for different purpose
3) fund used for unrelated to the business (Shiphon-Off)
4) unauthorized sale of loan security
 
Committee headed by ED in a bank declares willful defaulter after giving an opportunity to the borrower and he gets 15 days to respond.

CMD has to review before declare of willful defaulter

If loan amount is greater than or equal to 25 lac,  report has to made to all credit information companies for suit filed. 

If loan amount is less than 25 lac, reporting to Credit Information companies is not required.

Action by Other Bank of Willful Declaration 
1. No Additional Loan
2. No Loan to new project of defaulter for 5 years

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