THE MINISTER OF STATE IN THE MINISTRY OF FINANCE
(a) to (d): The bank-wise amount of Non-Performing Assets (NPAs) of Public Sector Banks (PSBs), as per Reserve Bank of India (RBI) global operations data, and the bank-wise number of wilful defaulters and related amount in respect of wilful defaulters of PSBs, as per data reported by PSBs, as on 31.12.2017, are at Annex.
A number of steps have been taken to reduce/contain (NPAs) of banks, and to reduce incidence of default on account of and effect recovery from wilful defaulters.
To reduce/contain NPAs of banks, the Insolvency and Bankruptcy Code, 2016 has been enacted for time-bound resolution of stressed assets. Further, the Banking Regulation Act, 1949 has been amended to provide for authorisation by the Government to RBI, for issuing directions to banks to initiate the insolvency resolution process under the Code. Under the provisions of this amending legislation, RBI has issued directions to certain banks for referring 12 accounts, with outstanding amounts greater than Rs. 5,000 crore and with 60% or more classified as non-performing as of 31.3.2016, to initiate insolvency resolution process under the Code. In accordance with these directions, banks have filed applications in respect of these accounts before the National Company Law Tribunal. Further, keeping in view the enactment of the Code, RBI has issued a revised framework for resolution of stressed assets, which provides for time-bound resolution of high-value stressed accounts. The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act has been amended to make it more effective. Further, six new Debts Recovery Tribunals have been established to expedite recovery. In addition, under the PSB Reforms Agenda, PSBs have committed, inter-alia, to create Stressed Asset Management verticals for stringent recovery and ensure clean and effective post-sanction follow-up for large credit exposures through specialised monitoring agencies.
To reduce incidence of default on account of and effect recovery from wilful defaulters, as per RBI’s instructions, wilful defaulters are not sanctioned any additional facilities by banks or financial institutions, their unit is debarred from floating new ventures for five years, and lenders may initiate criminal proceedings against them, wherever necessary. As per data reported by PSBs, as on 31.12.2017, 2,108 FIRs have been registered against wilful defaulters, 8,462 suits have been filed for recovery from them, and action has been initiated under the SARFAESI in respect of 6,962 cases of wilful defaulters. SEBI Regulations have been amended to debar wilful defaulters and companies with wilful defaulters as promoters/directors from accessing capital markets to raise funds. Further, the Insolvency and Bankruptcy Code has been amended to debar wilful defaulters from participating in the insolvency resolution process.
(e): RBI has informed that it is unable to disclose borrower-wise credit information under the provisions of section 45E of the Reserve Bank of India Act, 1934. Section 45E provides that credit information submitted by a bank shall be treated as confidential and not to be published or otherwise disclosed.
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