The Reserve Bank of India (RBI) Thursday proposed that lenders should classify a borrower as a “wilful defaulter” within six months of their account being declared a non-performing asset (NPA). The RBI did not earlier have a specific timeline within which such borrowers had to be identified.
The revision of norms comes after a review of the instructions and consideration of various judgments and orders from the Supreme Court and High Courts, as well as representations and suggestions received from banks and other stakeholders, the central bank said.
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