RBI Asks Banks Not To Publish Defaulters' Photo Randomly

RBI has said that lenders can publish photographs of only those borrowers in newspapers who have been declared wilful defaulters as per the central bank's guidelines.

As per reports, while asking the banks not to indiscriminately publish photographs of defaulters and guarantors in newspapers, it directed the lending institutions to formulate a policy in this regard.

RBI Asks Banks Not To Publish Defaulters' Photo Randomly

The Reserve Bank further said that it has been observed that some lending institutions have been publishing the photographs of defaulters and guarantors in newspapers.

Commenting on the issue, a RBI Official told the media, "A lending institution can consider publication of the photographs of only those borrowers, including proprietors/ partners /directors / guarantors of borrower firms/ companies, who have been declared as wilful defaulters following the mechanism set out in the RBI instructions."

"This will not apply to the non-whole time directors who are exempted from being considered as wilful defaulters unless the special conditions are satisfied," he added.

Read more about: rbi, banks
Story first published: Friday, September 30, 2016, 12:50 [IST]
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