In the wake of the Nirav Modi PNB Scam, the government has directed banks to collect details of passport of all borrowers who have taken loans of over Rs. 50 crore to prevent such fraudsters from absconding the country in future course of time as per the sources said the PTI report.

The details of the passport from all such borrowers have to be fetched within a timeframe of 45 days.

The advisory to banks said that the loan form should be modified suitably to include the column for passport details of borrowers. In respect of borrowers who do not have passport, a self-declaration should be made stating that the person concerned does not has a passport.

In the absence of such details, banks fail to take any timely action against such fraudsters especially willful defaulters who try to evade the prosecution of the court by fleeing from the court.

This makes the recovery mechanism by the investigative and other authorities difficult. The Centre issues the advisory to the banks after the Cabinet approved of the setting of an independent entity for overseeing the functioning of Auditors through NFRA and made a call to pass the Fugitive Economic Offenders Bill 2017.

With Inputs From PTI