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‘Name & shame’ defaulters by making their pictures public: Govt to banks – informationspot

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Tightening around wilful defaulters, the government has asked to ‘name and shame’ such borrowers by publishing their photographs and other details in newspapers. The ministry has written a letter to all state-run directing them to take board approvals for publication of photographs of such defaulters. Sources quoting advisory of the ministry said, Lending institutions shall formulate a policy with the approval of their board of directors which clearly set out the criteria for publication of photographs of wilful defaulters. The number of wilful defaulters, who did not repay loans to public sector (PSBs) despite the capacity to do so, rose to 9,063 at the end of December 2017. The amount involved for PSBs is reported as Rs 1100.50 billion, Shiv had said in a written reply in the Lok Sabha Taking forward its fight against wilful defaulters, the government last week directed to seek passport details of borrowers taking loans of Rs 500 million and more. Passport details will aid to take timely action and inform the relevant authorities to prevent fraudsters from fleeing the country. “Next step in clean and responsible Passport details must for loans above Rs 500 million.

Step to ensure quick response in case of fraud,” had said. For all existing loans of over Rs 500 million, have been asked to collect passport details of borrowers within 45 days, he added. 'Name & shame' defaulters by making their pictures public: Govt to banks Several big defaulters like Nirav Modi, Mehul Choksi, and have fled the country putting the recovery mechanism in quandary. The government has tabled the Fugitive Economic Offenders Bill after and his uncle allegedly defrauded state-owned (PNB) of Rs 127 billion and left the country and are refusing to cooperate with law enforcement agencies. The proposed aims to impound and sell assets of Nirav Modi-type escapees with a view to quickly recover dues. It also will apply to defaulters who have an outstanding of Rs 1 billion or more and have escaped from the country. The Ministry has also directed public sector (PSBs) to probe all NPA accounts of over Rs 500 million for possible fraud and accordingly report the cases to Besides, the ministry had asked to monitor loans above Rs 2.5 billion and red flags whenever the original covenants of the loans are violated. This was spelt out as part of 6-point-reform measures announced.

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