Govt asks banks to 'name and shame' wilful defaulters
New Delhi: Tightening the noose around wilful defaulters, the government has asked banks to 'name and shame' such borrowers by publishing their photographs and other details in newspapers.
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.
Sources quoting advisory of the finance ministry said, Lending institutions shall formulate policy with the approval of their board of directors which explicitly set out the criteria for publication of photographs of wilful defaulters.
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 December 2017.