Back to Career News

RBI proposes changes in wilful defaulter norms

September 22, 2023

RBI proposes changes in wilful defaulter norms
The Reserve Bank of India (RBI) on Thursday proposed sweeping changes in norms concerning wilful defaulters, defining them as someone who has an outstanding amount of ₹25 lakh and above and has refused to repay despite having the capacity to pay.

RBI has sought comments on the new draft master direction that proposes to expand the scope for lenders which can classify borrowers as wilful defaulters, and refine the identification process.
 
Wilful defaulters shall not be eligible for restructuring of credit facility and cannot be on the board on any other company.
 
\”The lender shall, wherever warranted, initiate legal action against the borrowers/ guarantors for foreclosure/ recovery of dues expeditiously,\” the draft said.
 
It also proposes a review and finalisation on wilful default aspects within six months of an account being classified as a non-performing asset.Comments on the draft can be submitted to RBI by October 31.
Important Links:

Recommended for you ...

Axis Bank and Mastercard Launch Premium Credit Card for Small Business Owners
Axis Bank and Mastercard Launch Premium Credit Card for Small Business Owners

September 26, 2024

Banks Report Over 15% Growth in New Credit Card Additions: RBI Data
Banks Report Over 15% Growth in New Credit Card Additions: RBI Data

September 26, 2024

National Company Law Tribunal (NCLT) Approves Merger of IDFC and IDFC First Bank
National Company Law Tribunal (NCLT) Approves Merger of IDFC and IDFC First Bank

September 25, 2024

Chat on WhatsApp