Loan Defaulters Photos 2013 in Newspapers by Bank

Loan Defaulters Photos 2013 in Newspapers by Bank

ADOPTING a name and shame policy to make borrowers pay their dues, banks have decided to publish in newspapers photographs and details like names and addresses of wilful loan defaulters and market leader SBI has taken the lead in doing so.

Besides, banks would also publish photographs, names and addresses of guarantors of such defaulters in newspapers if the dues are not cleared within 15 days of the notice containing particulars of the original borrowers.

Some banks have also decided to prominently display the photographs and other details of the wilful loan defaulters at branches in the Locality of such borrowers, a senior executive with a leading bank said.

Taking the lead. State Bank of India has begun publishing photographs and other particulars of such defaulters and has published one such public notice in newspapers for five defaulters in the national capital. These persons had taken export credit loans of Rs three lakh each and [heir outstanding amounts were in the range of Rs 2.6 lakh to Rs 2.93 lakh. Executives at many other hanks said that they would also publish the photograph* and other details of their wilful detault-ers in local newspapers circulated in areas of residence of such persons.

As per RBI's regulations, wilful defaulters are mostly those who are found to be engaged in deliberate non-payment of dues despite adequate cash flow and good net worth.

Besides, banks can also classify defaulters as "wilful" if the loans are utilised for purposes other than those previously staled. funds are siphoned off from the bank-financed activity, records arc falsified, securities are disposed of without bank's knowledge and the borrower indulges in fraudulent transactions.

RBI has already put in place a system to disseminate credit information pertaining to wilful defaulters for cautioning banks and financial institutions, so that any further bank finance is not made available to such borrowers.

Now. banks have decided to make public the photographs and other details of wilful loan defaulters through newspaper notices, so that such borrowers clear their dues. Besides, banks also expect such notices to act as a deterrent for others against any loan defaults.