How RBI Master Circular Will Impact Willful Loan Defaulters | Paisa Live

The RBI has developed a master plan for handling loan defaulters, including issuing guidelines to all banks and non-banking financial companies (NBFCs). Under the RBI's order, banks and NBFCs are required to investigate willful defaulters in all non-performing asset (NPA) accounts with outstanding amounts of ₹25 lakhs or more. This directive aims to enhance the scrutiny of defaulters who deliberately fail to repay their loans. By implementing these guidelines, the RBI seeks to improve the recovery process and hold defaulters accountable, thereby reducing the financial burden on the banking sector and ensuring more rigorous management of delinquent accounts. To know more watch the video till the end.