RBI For transparent wilfull defaulter norms.pptx

Transparent for wilfully defaulter norms

1. RBI For transparent wilfull defaulter norms Wilful defaulters must be defined as someone who has an outstanding amount of 25 lakh rupees and above and those who refuse to repay their loans despite having the capacity to pay.

2. The Reserve Bank of India (RBI) has proposed a transparent mechanism for declaring a borrower a wilful defaulter. The move follows a Supreme Court decision earlier this year that made it mandatory for lenders to give borrowers a chance to represent themselves before declaring an account as fraudulent.

3. The central bank has also laid down a lengthy system of identification to make it foolproof. It proposed an outstanding balance threshold of ₹25 lakh, above which all accounts would be examined for identification. The primary objective of these directions is to provide for a non-discriminatory and transparent procedure, while complying with the principles of natural justice for classifying a borrower as a wilful defaulter by the lenders,” said the RBI, which issued a draft master direction on treatment of wilful defaulters and large defaulters