PSBs get more power to ask govt for look-out circulars against defaulters

Move seen to empower state-owned banks to keep eye on defaulters

The Union government has empowered chief executives of public sector banks (PSBs) to request a look-out circular (LoC) against wilful defaulters of loans in an effort to prevent them from fleeing the country, senior finance ministry officials said on Thursday. This is a significant step, given it will enable PSBs to alert authorities to stop wilful defaulters from escaping even before an FIR is registered against them by enforcement agencies. 

Big businessmen have fled the country in recent times, to avoid prosecution, thus leaving the government red-faced. Government officials said investigative agencies often took time to register an FIR, following