Page 9 - Banking Finance April 2018

BANK UPDATE

DCB Bank's starts new PSU banks may be asked to seek passport details of
remittance service large borrowers
DCB Bank has introduced a new re- In order to stop the loan defaulters from fleeing the country, the government is
mittance ser- exploring the possibility of directing PSU banks to seek
vice 'DCB Re- passport details of borrowers of loans above Rs 50
mit' that will crore.
allow a resi- This move is being mooted to ensure better coordina-
dent Indian tion between various investigative agencies in the
having a bank account in India to event of a defaulter trying to flee the country. Banks can also alert investiga-
remit or send money online, globally. tive agencies immediately if they come across cases of fraud. The move comes
In a statement bank said: "Once the against the backdrop of several high profile cases, including the recent Rs 12,600
exchange rate is locked, the cus- crore fraud in Punjab National Bank (PNB) allegedly triggered by jewellers Nirav
tomer can transfer the funds from Modi and Mehul Choksi. The government is making all out efforts to get them
any account to DCB Bank's account. back to the country to face the law. Authorities have also been trying to get
The funds will then be transferred to former liquor baron Vijay Mallya extradited from the UK and face the law for
the beneficiary account abroad lat- the Kingfisher airlines default case.
est by the next business day." Resi-
Sources said passport details with banks will also deter any defaulter from try-
dent Indians can register online and ing to flee for fearing of being apprehended in airports. While the idea is under
transfer funds across 20 countries, discussion, a final call maybe taken soon, they said. The government has taken
including the US, Canada, Australia,
a series of steps to tighten the processes in state-run banks to ensure that there
the UK, the UAE and Germany, and is better coordination between various wings.
track the same from a mobile phone,
it added. Aircel files for protection under bankruptcy code

India set to join Euro- Aircel one of the oldest mobile brand, has filed for bankruptcy protection with
the National Company Law Tribunal's Mumbai
pean Bank of Reconstruc- bench. The combined effect of having a huge
tion and Development debt pile, a promoter who has lost interest in
the Indian market and the overall financial
India is set to join the European Bank
stress in the telecom industry following Reliance
of Reconstruc-
Jio's launch has pushed Aircel to take this step.
tion and Devel-
opment (EBRD) "The board acknowledged that it has been fac-
after its share- ing troubled times in a highly-financially
holders agreed stressed industry, owing to intense competition following the disruptive entry
to admit the country, enabling Indian of a new player, legal and regulatory challenges, high level of unsustainable debt
companies to undertake joint invest- and increased losses," Aircel said in a statement.
ments in regions in which the EBRD The company has filed an application to undertake Corporate Insolvency Reso-
operates. "This is an important step lution Process (CIRP), under Section 10 of the Insolvency and Bankruptcy Code
in the relationship between the EBRD 2016, for Aircel Cellular, Dishnet Wireless and Aircel, it said, adding, that CIRP
and India, allowing us to build further is not a proceeding for liquidation but a process to find the best possible resolu-
on already very close ties," said EBRD tion to protect and preserve the value of the company and manage the opera-
President Suma Chakrabarti. While tions.
Indian businesses have cooperated on Aircel has already closed operations in six circles and is facing trouble in other
EBRD projects worth €982 million, the
regions. GTL Infra, which provides towers to Aircel, has turned off network sup-
hope is that membership will spur fur-
port to the operator for its failure to pay its dues. Other mobile operators, in-
ther investment by Indian firms in a cluding Idea Cellular and Vodafone, have stopped interconnection for the same
range of sectors.
reason.

BANKING FINANCE | APRIL | 2018 | 9