Wilful Defaulters

"Wilful defaulters or any entity with which a wilful defaulter is associated shall not be eligible for restructuring of credit facilities," the RBI said

Karad also informed the Lok Sabha that the Centre has written off loans worth over Rs 10 trillion, in the last five years

Wilful defaulter dues up by Rs 1.2 trillion since the Covid-19 pandemic began. Some states have seen a larger rise than others

The RBI circular permitting banks to enter into a one-time settlement with wilful defaulters poses a significant risk to the stability of financial institutions in the country, the CPI MP Binoy Viswam has said. In a letter to Union Finance Minister Nirmala Sitharaman, Viswam said that by offering lenient settlement terms to individuals and entities that have deliberately evaded their repayment obligations, the circular undermines the fundamental principles of responsible lending and borrower accountability. "I write to you to express my deep apprehensions regarding the circular issued by the Reserve Bank of India (RBI) permitting banks to enter into a one-time settlement (OTS) with wilful defaulters. This circular poses significant risks to the stability of our financial system," he said. He said that such a move not only "erodes public confidence in our banking sector but also creates moral hazards by incentivizing reckless borrowing and default." "Allowing wilful defaulters to ..

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RBI says compromise settlement is not a new regulation, has been around for over 15 years; But unlike normal defaulters, wilful and fraud accounts barred from availing bank finance for 5 years

Debt recast to be allowed only if promoter changes

The new rules will reportedly give the borrower a personal hearing before they are declared a wilful defaulter

"Banks recovered over Rs 1,86,000 lakh crore from written-off loan accounts of wilful defaulters from 2014 to 2021," BJP's Amit Malviya added.

Public sector banks accounted for 77.4 per cent of the total amount outstanding at Rs 5.3 trillion as of June

Banks are required to take steps to initiate the legal process, wherever warranted, against the borrowers or guarantors for recovery dues, she said.

Standards used now are not clear, resulting in hundreds of cases across India courts filed by borrowers, companies and individuals

Leading the chart is Mehul Choksi-promoted Gitanjali Gems Ltd with an outstanding loan of Rs 5,064.84 crore

The case by the UK subsidiary of PNB is seen as a landmark decision for similar cases involving wilful defaulters who are residing in or have assets in the UK

Congress has attempted to mislead people, and Rahul Gandhi should introspect why his party fails to play a constructive role in cleaning up the system, says Nirmala Sitharaman

Gandhi was asking the government to name wilful bank loan defaulters, but was not allowed another supplementary question amid uproar in the lower house.

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For over ten years, the RBI has denied RTI applicants this information arguing that it would be against the economic interests of the country

IDBI Bank has informed and cautioned the public through the notice that "no person shall deal with any of the properties of the borrower/guarantor as huge dues are to be recovered from them".

Amount outstanding is up by over a tenth in a quarter