Senior public sector bank executives said, “There was apprehension the banking system would be misused by wilful defaulters after banks stopped reporting about them. Continuing such reporting would help asset reconstruction companies recover dues from the assets acquired by them and, consequently, redeem security receipts,” reports Business Standards.

RBI puts on measures as per its guidelines to be initiated by the banks against the wilful defaulters as no additional facility should be granted to the wilful defaulters and issuance of legal process wherever warranted against the borrowers.

In the course of 3 years, the credit excellence of banks in India has depleted sharply. Net NPAs rose from 2.4 percent since March 2011 to 4.4 percent in December 2013 and before improving to 4.1 percent in March 2014.

Banks have urge RBI and credit information companies to preserve a record of wilful defaulters. Any addition or removal from this record must be carried out only after getting a receipt of information from banks.

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