This Master Direction on wilful defaulters serves as a comprehensive guideline delineating the regulatory framework and procedures for classification of borrowers as wilful defaulters. This directive plays a crucial role in maintaining the integrity of the financial system by outlining the measures and consequences for those borrowers who deliberately default on their financial obligations.
Applicability
(1) The provisions regarding wilful defaulters contained in these Directions shall apply to the ‘lenders’ as defined in these Directions.
(2) Asset Reconstruction Companies (ARCs), and Credit Information Companies (CICs) shall be bound by these Directions only with regard to the reporting requirements contained in Chapter III.
(3) The restrictions on further financial accommodation to wilful 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.
(4) The provisions regarding large defaulters contained in these Directions 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.
(5) With these directions, instructions on Non-Cooperative Borrowers contained in circular DBR.No.CID.BC.54/20.16.064/2014-15 dated December 22, 2014 stand repealed. Reference is also drawn to Appendix on the ‘List of Circulars’ repealed with the issuance of this Master Direction.
Link – https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=12713&Mode=0
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