Willful defaulters are no longer in trouble, RBI is going to make new rules

Reserve Bank of India has prepared a draft by changing the rules for willful defaulters. In the new draft rules of RBI, the process of identifying willful defaulters has been redesigned.

Now, it is not good for those who deliberately do not repay the loan. Actually, Reserve Bank of India has drafted strict rules for willful defaulters. According to which, if someone is reluctant to repay the loan then his welfare will not be good. Taking a strict stance on such willful defaulters, RBI has proposed comprehensive changes in the norms related to them. In this proposal, RBI has included such people in the category of willful defaulters who have loans of Rs 25 lakh and more and have refused to repay the loan despite having the ability to pay.

RBI asked for suggestions

RBI has sought suggestions from stakeholders on the new draft master direction. The proposal proposes to expand the scope for lenders to categorize borrowers as willful defaulters, further simplifying the identification process.

RBI has said in its proposal that such willful defaulters will not be able to restructure the credit facility. Apart from this, willful defaulters cannot join the board of any other company. It has been said in the draft that wherever necessary, the lender can take legal action against the borrower for foreclosure or recovery of his loan.

You can give suggestions till 31st October

This draft of RBI also proposes to review and finalize the willful default aspects within six months of declaring an account as NPA. Stakeholders can submit their suggestions on the draft to RBI by 31 October.