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NPAs: Parliamentary panel seeks disclosure of loan defaulters

The committee appreciates that RBI is in favour of making available information on wilful defaulters in public domain

Press Trust of India  |  New Delhi 

NPAs, loan defaulters, RBI, banks, bad loans, SBI Act
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Concerned over burgeoning (NPAs), a Parliamentary committee has made a case for amending banking laws, including the SBI Act, to provide for disclosure of names of There is an urgent need for to reduce and clean up the balance sheets which would increase their ability to raise capital and improve credibility, the Committee on Petitions said in its report tabled in Parliament today. It also said: "The Committee appreciates the remedial measures being taken by the Government/(RBI) to put a check on the burgeoning and to reduce the volume of in the " It appreciated the enactment of the Insolvency and Bankruptcy Code, 2016 (IBC); making amendments in the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act and the Recovery of Debts due to and Financial Institutions (RDDBFI) Acts to improve resolution/recovery of The report said the Committee had recommended that the government make appropriate amendments in "the archaic provisions of the and other relevant laws to disclose the names of individuals - who owe money to the or are responsible for on account of their default to repay". In this regard, it said, the Committee appreciates that is in favour of making available information on wilful defaulters in public domain. However, it added, the Ministry of (Department of Financial Services)/are of the opinion that the disclosure of information of other defaulting may not be in the interest of the revival of their distressed business units which may be otherwise viable. The Committee reiterated that they should undertake an "objective examination and analysis of the extant provision(s) for disclosure of details of in public domain by amending the existing relevant Acts/Rules vis-a-vis interest of the revival of their distressed Business Units without having any impact on their viability". It also noted that diversion of funds by industrialists to their un-related businesses and negligence on the part of bank officials in pre-sanctioning of loans are the determining factors for turning bad. In this regard, the report said, the Committee had earlier recommended that a proper and stern audit mechanism should be made mandatory for a specific class of borrowers, especially, the big loan seekers.

Concerned over burgeoning (NPAs), a Parliamentary committee has made a case for amending banking laws, including the SBI Act, to provide for disclosure of names of There is an urgent need for to reduce and clean up the balance sheets which would increase their ability to raise capital and improve credibility, the Committee on Petitions said in its report tabled in Parliament today. It also said: "The Committee appreciates the remedial measures being taken by the Government/(RBI) to put a check on the burgeoning and to reduce the volume of in the " It appreciated the enactment of the Insolvency and Bankruptcy Code, 2016 (IBC); making amendments in the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act and the Recovery of Debts due to and Financial Institutions (RDDBFI) Acts to improve resolution/recovery of The report said the Committee had recommended that the government make appropriate amendments in "the archaic provisions of the and other relevant laws to disclose the names of individuals - who owe money to the or are responsible for on account of their default to repay". In this regard, it said, the Committee appreciates that is in favour of making available information on wilful defaulters in public domain. However, it added, the Ministry of (Department of Financial Services)/are of the opinion that the disclosure of information of other defaulting may not be in the interest of the revival of their distressed business units which may be otherwise viable. The Committee reiterated that they should undertake an "objective examination and analysis of the extant provision(s) for disclosure of details of in public domain by amending the existing relevant Acts/Rules vis-a-vis interest of the revival of their distressed Business Units without having any impact on their viability". It also noted that diversion of funds by industrialists to their un-related businesses and negligence on the part of bank officials in pre-sanctioning of loans are the determining factors for turning bad. In this regard, the report said, the Committee had earlier recommended that a proper and stern audit mechanism should be made mandatory for a specific class of borrowers, especially, the big loan seekers.

First Published: Fri, December 22 2017. 20:56 IST
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