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Bank to publish bank defaulters in newspaper with photo

Posted in Business2 years ago • Written by Carla NightNo Comments

Loan defaulter now need to be beware as banks are now going to adopt the policy of name and shame to make them pay their dues. The lead has been taken by SBI to publish the name, complete detail, address and photographs in newspaper.

The due is not cleared in 15 days of the notice then even the guarantor of such defaulter are also to face the aftereffect as even their name, address and photographs will also be published.

Some banks are even taking a step of displaying the information of such defaulter permanently at the branch office in the locality. Senior executive said that this would be done to the loan defaulters who do it willfully. By leading this, State Bank of IndiaBSE 1.64 % has already begun making public the photographs and related information of loan defaulters. The bank has published a notice of five such defaulters in the national capital.

the defaulters are found guilty of taking loan for export credit of Rs three lakh each and the moaning that was outstanding were somewhere near to Rs 2.6 lakh to Rs 2.93 lakh. The name and shame game is completely on, other banks said that the details of the defauletrs will be distributed in the locality of the willful defaulters and the attempt would be made to cover the local newspapers.

According to RBI’s regulations, the defaulters who are willfully engaged in taking loan and not repaying it are among those who deliberately engage themselves for dues despite of having a good networth and ample cash flow. Those who take loan for a specific purpose but use if somewhere else,  funds drawn from the bank from activities funded by the bank false records, uninformed securities etc will also be considered defaulter by the banks as “willful”.

A system has already been placed by RBI to distribute credit information of the defaulters to various financial institutions and banks so that no further transaction can be made by them and neither they are able to borrow again. The step has been taken to reduce the number of defaulters and their information is made public so that the dues can be cleared. Such notice will also act as prevention against such cases further.

Other defaulter were warned with the notice and they might be the next in the list of the due are not cleared immediately, Credit Information Bureau India Ltd (CIBIL) is also asked by RBI to create list of willful defaulters who are involved in a default of Rs 25 lakh and above.

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