Wilful Defaulters! Better pay the loan or face the shame as banks can put your photos on website

New Delhi, March 15: Wilful Defaulters, now this is the high time when the banks shall take a step against you. It has been directed to teach these defaulters a lesson by shaming their names. The Public sector banks have been directed to publish the photos of the willful defaulters on their websites.

The finance ministry has written a letter to all state-run banks directing them to take board approvals for publication of photographs of such defaulters.

According to sources, the letter describes “Lending institutions shall formulate a policy with the approval of their board of directors which clearly set out the criteria for publication of photographs of wilful defaulters.”

Recently MoS of Finance Shiv Pratap Shukla said in Lok Sabha that the number of wilful defaulters, who did not repay loans to public sector banks (PSBs) despite the capacity to do so, rose to 9,063 at the end of last year. The amount involved for PSBs is reported as Rs1,10,050 crore.

Last week the Centre had announced that individuals who seek loans of Rs 50 crore and above must furnish their passport details. Financial Services Secretary Rajiv Kumar had said that the move is taken to ensure swift action in case of any fraud.

The Cabinet had also approved the Fugitive Economic Offenders Bill to impound and sell assets of escapees with a view to quickly recover dues. The proposed law is also applicable to defaulters who have an outstanding of Rs 100 crore or more and have escaped from the country.