The RBI yesterday issued a Master Direction on the Treatment of Wilful Defaulters and Large Defaulters under which banks and NBFCs will have to examine the ‘wilful default’ aspect in all non-performing asset accounts with outstanding amounts of Rs 25 lakh and above. The provisions regarding reporting and dissemination of credit information pertaining to large defaulters shall apply to all entities regulated by the Reserve Bank, irrespective of whether they fall within the definition of ‘lender’ as provided in these Directions or not. All entities regulated by the Reserve Bank, including ‘lenders’, shall submit information to all credit information companies (CICs) in respect of the large defaulters at monthly intervals – a list of suit filed accounts of large defaulters; and a list of non-suit filed accounts of large defaulters whose account has been classified as doubtful or loss (in accordance with the instructions issued by the Reserve Bank from time to time).
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