RBI issues Master Direction on treatment of Wilful Defaulters and Large Defaulters.

Banking & Finance

The Reserve Bank of India (RBI) has issued new Master Directions concerning the treatment of Wilful Defaulters and Large Defaulters. These guidelines aim to provide clear procedures for banks and financial institutions to identify and manage borrowers who deliberately avoid repaying their loans or fail to settle large debts. The directions emphasize the importance of maintaining financial stability and ensuring that appropriate actions are taken against such defaulters. This step is part of RBI's ongoing efforts to enhance the effectiveness of credit management and uphold integrity within the financial system.


      Banks must enhance monitoring mechanisms for early detection of wilful and large defaulters.

      The directions mandate stricter reporting and compliance measures to curb default rates.

     

 

     


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CEO : Shaktikanta Das
Headquarter : Mumbai
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