RBI introduces guidelines targeting wilful defaulters in NPA accounts over Rs 25 lakh, requiring lenders to classify within 6 months.
The Reserve Bank of India (RBI) has introduced comprehensive guidelines targeting wilful defaulters, mandating banks and NBFCs to scrutinize all non-performing asset (NPA) accounts with outstanding dues of Rs 25 lakh and above for signs of wilful default. Lenders must classify a borrower as a wilful defaulter within six months of an account being designated as NPA. The new norms, effective from November 1, outline measures and consequences for borrowers who intentionally default on loans of Rs 25 lakh or more.
July 30, 2024
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