NEW DELHI: The Finance Ministry has directed state-owned banks to obtain passport main points of all borrowers, who have taken loans in far more than Rs 50 crore, within 45 days so as to fighting alleged fraudsters like Nirav Modi and Vijay Mallya from fleeing the rustic, resources stated.
In case the borrower does not have a passport, the financial institution will have to obtain a certificate in the type of declaration that the individual does not have the passport, resources stated quoting the Finance Ministry's advisory to banks.
It further stated that the loan utility shape will have to be suitably modified to incorporate passport main points of borrowers.
Passport main points will lend a hand banks to take well timed motion and tell the related authorities to stop fraudsters from fleeing the rustic, resources stated.
In absence of passport main points, banks were hamstrung in taking well timed motion to stop defaulters especially wilful one from fleeing the rustic.
Several giant defaulters like Nirav Modi, Mehul Choksi, Vijay Mallya and Jatin Mehta have fled the rustic putting recovery mechanism in catch 22 situation.
Last week, the Cabinet authorized the Fugitive Economic Offenders Bill, regardless that it was introduced in the Budget for 2017-18, has been hastened after Nirav Modi and his uncle Mehul Choksi allegedly defrauded state-owned Punjab National Bank (PNB) of Rs 12,700 crore and left the rustic and are refusing to cooperate with legislation enforcement agencies.
The Bill supplies for confiscating all belongings of absconding fraudsters and loan defaulters to get better dues in a bid to tighten noose around fugitives like diamond service provider Nirav Modi and Vijay Mallya.
The Union Cabinet chaired by Prime Minister Narendra Modi additionally authorized putting in of a National Financial Reporting Authority (NFRA) as an unbiased regulator for the auditors.
The proposed fugitive legislation aims to impound and promote belongings of Nirav Modi-type escapees so as to briefly get better dues. It additionally will apply to defaulters who have an outstanding of Rs 100 crore or extra and feature escaped from the rustic.
As a part of force to scrub the banking machine, the Finance Ministry final week had directed public sector banks (PSBs) to probe all NPA accounts of over Rs 50 crore for possible fraud and accordingly file the circumstances to CBI.
"PSB MDs directed to detect bank frauds & consequential wilful default in time & refer cases to CBI. To examine all NPA accounts > Rs 50Cr for possible fraud," Financial Services Secretary had stated in the tweet.
Besides, the ministry had asked banks to watch loans above Rs 250 crore and pink flags whenever the original covenants of the loans are violated. This was spelt out as a part of 6-point-reform measures introduced for PSBs in January.
In case the borrower does not have a passport, the financial institution will have to obtain a certificate in the type of declaration that the individual does not have the passport, resources stated quoting the Finance Ministry's advisory to banks.
It further stated that the loan utility shape will have to be suitably modified to incorporate passport main points of borrowers.
Passport main points will lend a hand banks to take well timed motion and tell the related authorities to stop fraudsters from fleeing the rustic, resources stated.
In absence of passport main points, banks were hamstrung in taking well timed motion to stop defaulters especially wilful one from fleeing the rustic.
Several giant defaulters like Nirav Modi, Mehul Choksi, Vijay Mallya and Jatin Mehta have fled the rustic putting recovery mechanism in catch 22 situation.
Last week, the Cabinet authorized the Fugitive Economic Offenders Bill, regardless that it was introduced in the Budget for 2017-18, has been hastened after Nirav Modi and his uncle Mehul Choksi allegedly defrauded state-owned Punjab National Bank (PNB) of Rs 12,700 crore and left the rustic and are refusing to cooperate with legislation enforcement agencies.
The Bill supplies for confiscating all belongings of absconding fraudsters and loan defaulters to get better dues in a bid to tighten noose around fugitives like diamond service provider Nirav Modi and Vijay Mallya.
The Union Cabinet chaired by Prime Minister Narendra Modi additionally authorized putting in of a National Financial Reporting Authority (NFRA) as an unbiased regulator for the auditors.
The proposed fugitive legislation aims to impound and promote belongings of Nirav Modi-type escapees so as to briefly get better dues. It additionally will apply to defaulters who have an outstanding of Rs 100 crore or extra and feature escaped from the rustic.
As a part of force to scrub the banking machine, the Finance Ministry final week had directed public sector banks (PSBs) to probe all NPA accounts of over Rs 50 crore for possible fraud and accordingly file the circumstances to CBI.
"PSB MDs directed to detect bank frauds & consequential wilful default in time & refer cases to CBI. To examine all NPA accounts > Rs 50Cr for possible fraud," Financial Services Secretary had stated in the tweet.
Besides, the ministry had asked banks to watch loans above Rs 250 crore and pink flags whenever the original covenants of the loans are violated. This was spelt out as a part of 6-point-reform measures introduced for PSBs in January.
Collect passport details of big borrowers in 45 days: Finance Ministry tells banks
![Collect passport details of big borrowers in 45 days: Finance Ministry tells banks]()
Reviewed by Kailash
on
March 06, 2018
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