Reserve Bank of India (RBI) collects on quarterly basis, the information on Willful Defaulters (non-suit filed accounts) of Rs. 25 lakh and above from Banks. Besides RBI, the Credit Information Companies, including Credit Information Bureau of India Ltd. (CIBIL) are maintaining a database on suit filed accounts, including willful defaulters with Rs. 25 lakhs and above. The details of such accounts as on 31st March 2012 in Public Sector Banks are as under:
(Amount in Rs. Crore)
|Suit Filed Accounts||Non-Suit Filed Accounts|
|State Bank Group||1085||7014.40||981||3491.58|
|Total Public Sector Banks||3536||16525.30||1138||4174.70|
A “willful default” would deem to have occurred if the unit has defaulted in meeting its payment/repayment obligations to the lender when the unit has:
A copy of list of willful defaulters, (non-suit filed accounts) and list of willful defaulters (suit filed accounts) are forwarded to Securities & Exchange Board of India (SEBI) by RBI and CIBIL respectively, in order to prevent them to access the capital markets. No additional facilities are to be granted by any bank/FI to the listed willful defaulters.
The legal process, wherever warranted, against the borrowers/guarantors and foreclosure of recovery of dues should be initiated expeditiously by the banks. The lenders may also initiate criminal proceedings against willful defaulters, wherever necessary.
Other legal options available to banks for resolution of NPAs/recovery of loans, are action under Securitization and Reconstructions of Financial Assets and Enforcement of Security Interest Act 2002 (SARFAESI Act, 2002), recourse to Debt Recovery Tribunals (DRTs) and Lok Adalats.
This information was given by the Minister of State for Finance, Shri Namo Narain Meena in written reply to a question in Lok Sabha today.