How RBI Plans to Tackle Willful Defaulters of Loans
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How RBI Plans to Tackle Willful Defaulters of Loans How RBI Plans to Tackle Willful Defaulters of Loans Willful defaulters are those borrowers who have the ability to repay their loans but choose not to do so. They pose a serious threat to the banking system and the public money. The Reserve Bank of India (RBI) has recently prepared a draft to curb the menace of willful defaulters and take strict action against them. Here are the key points of the draft and the implications for the borrowers. What is the new draft by RBI? : The new draft by RBI is based on the feedback of loan giving companies and suggestions of various courts. It proposes to crack down on willful defaulters who take loans of more than Rs 25 lakh in various ways. Some of the proposed rules are: Willful defaulters will have to settle their old NPA (non-performing asset) account before taking a new loan. Willful defaulters will not get the facility of restructuring of loan Willful defaulters ...