The Master Circular on Wilful Defaulters (RBI Circular, 2013), issued by Reserve Bank of India (RBI), has sought to put in place a system whereby banks and financial institutions (FIs) attempt to lower the number of wilful defaults by borrowers and penalise them for defaulting by disseminating credit information among other banks and FIs. This will lead to further bank finance being denied to borrowers who have been declared as “wilful defaulters”. By Partner Bishwajit Dubey, Principal Associate Designate Shatrajit Banerji and Senior Associate Prafful Goyal. (Photo Credit: SCC Online)
