Banks Urge RBI To Amend Norms Against Defaulters

BANGALORE:  Various banks in India have asked the Reserve Bank of India (RBI) to alter the customs for coverage on wilful defaulters and non-performing assets (NPAs). The decision is highly important as it will stop defaulters from taking new loans from other lenders, reporting to RBI and credit information firm should carry on even after NPAs were sold to asset reconstruction companies. 

RBI has already mentioned the guidelines to declare a borrower as willful defaulter.  It includes the limit on outstanding of Rs.25 lakh and above, and are required to be reported to RBI on quarterly basis as per the format given in the Master Circular on the subject and to CIBIL. The list has to be made and it should be sent to SEBI so as to prevent the access to the capital markets by the willful defaulters.

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