What can India Learn from China on Banking Frauds?

The latest crackdown by the China’s SPC have given India a much-needed lesson when it seems fragile in punishing these corrupt defaulters

What can India Learn from China on Banking Frauds
What can India Learn from China on Banking Frauds

At the time when breaching of the banking system has become a hobby for some corrupt industrialists who consider the system a puppet of their own hands, it becomes mandatory to have strict measures. Obviously each and every individual fantasize about putting them behind bars for looting their money in such a cruel and reckless manner but alas it just remains a Utopian dream for them. The general public just consoles themselves by reading the news in the newspapers and the debates of the so-called experts who consider it their ritual to condemn these corrupts. Even though our country boast of a descriptive law but when it comes to net out these big sharks they remain empty-handed as the defaulters like Vijay Mallya and Nirav Modi flee from the country with a compassionate ease. And once again the government and policymakers are left with the need of framing new policies which they are themselves sure in their sub-conscious mind of its infectivity.

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Unlike India, our neighbouring country China has crackdown its 7 million bank defaulters in a single stroke. China’s Supreme People’s Court (SPC) has blacklisted 6.73 million bank defaulters and restricted them from travelling by plane, applying for loans & credit cards or getting promoted. It has barred 6.15 million people from buying plane tickets, 2.22 million people from travelling in high-speed trains. These defaulters are restricted from applying bank loans or credit cards. Enforcement Bureau Chief Meng Xiang has confirmed that SPC has cooperated with airlines and railway companies to bar the defaulters with the help of their official IDs and passports. 71 K defaulters have been barred from serving as corporate representatives and executives whereas 5.5 lacs credit and bank loans have been barred by the Industrial and Commercial Bank of China. The most encouraging thing about this crackdown is that it hasn’t considered any exceptions as it also includes government staffs, members of local legislative and political advisory bodies including Communist Party of China Congress delegates as some had also been either expelled or have been demoted.

Such a much needed-step by the SPC have yielded result as almost one million defaulters have abided the court orders voluntarily.

Seeing such a positive transformation it would be an urge from the dear PM that please have one another Surgical Strike which would demolish these corrupt defaulters.