Begin typing your search above and press return to search.
proflie-avatar
Login
exit_to_app
The smouldering of anger in Ladakh
access_time 29 March 2024 4:20 AM GMT
Democracy that banks on the electorate
access_time 28 March 2024 5:34 AM GMT
Lessons to learn from Moscow terror attack
access_time 27 March 2024 6:10 AM GMT
Gaza
access_time 26 March 2024 4:34 AM GMT
The poison is not in words, but inside
access_time 25 March 2024 5:42 AM GMT
DEEP READ
Schools breeding hatred
access_time 14 Sep 2023 10:37 AM GMT
Ukraine
access_time 16 Aug 2023 5:46 AM GMT
Ramadan: Its essence and lessons
access_time 13 March 2024 9:24 AM GMT
When ‘Jai Sree Ram’ becomes a death call
access_time 15 Feb 2024 9:54 AM GMT
exit_to_app
Homechevron_rightBusinesschevron_rightWilful defaulters in...

Wilful defaulters in nationalised banks up 60% to 8,582 in 5 years

text_fields
bookmark_border
cancel
camera_alt""

New Delhi: The number of wilful defaulters in nationalised banks has increased by over 60 per cent to 8,582 in five years to March 2019, the government said Monday.

By the end of 2014-15 fiscal, the figure stood at 5,349, Finance Minister Nirmala Sitharaman said in a written reply in Lok Sabha.

A wilful defaulter is an entity or a person that has not paid the loan back despite the ability to repay it.

The minister was replying to a question whether the cases of wilful defaulters of banks have increased during the last five years.

Rising consistently since 2014-15, the number of such borrowers increased to 6,575 in 2015-16; 7,079 in 2016-17 and further to 7,535 in 2017-18.

"Wilful defaulters are acted against comprehensively. Moreover...as per RBI's instructions, wilful defaulters are not sanctioned any additional facilities by banks or financial institutions, and their unit is debarred from floating new ventures for five years," Sitharaman said.

Recovery of ₹7,654 crore has been done from wilful defaulters' accounts during the last five financial years, she said.

As per data reported by nationalised banks, till March 31, 2019, suits for recovery have been filed in 8,121 cases. In cases involving secured assets, action under the provisions of SARFAESI Act has been initiated in 6,251 cases.

There are 17 nationalised banks in India.

"Further, in accordance with RBI instructions of initiation of criminal proceedings wherever necessary, FIRs have been registered in 2,915 cases," Sitharaman said.

Besides, vide Sebi regulations, wilful defaulters and companies with wilful defaulters as promoters/directors have been debarred from accessing capital markets to raise funds, she said.

In addition, the Insolvency and Bankruptcy Code, 2016 has debarred wilful defaulters from participating in the insolvency resolution process.

For effective action against wilful defaulters fleeing Indian jurisdiction, the Fugitive Economic Offenders Act, 2018 has been enacted to provide for attachment and confiscation of property of fugitive offenders and has disentitled them from defending any civil claim.

The government has also advised public sector banks to decide on publishing photographs of wilful defaulters as well as to obtain certified copy of the passport of promoters/directors and other authorised signatories of companies availing loans of more than ₹50 crore, the minister said.

Heads of PSBs have also been empowered to request for issuance of look out circulars against wilful defaulters, she said.

Show Full Article
News Summary - Wilful defaulters in nationalised banks up 60% to 8,582 in 5 years
Next Story