The norm from the central bank's February 12 circular is pushing big borrowers who owe over Rs. 5 crore to regularize their payments stream. And in response to the RTI inquiry the RBI revealed that post this disclosure norm there has been a whopping decrease in default to over 60% to Rs. 55,070 as on September 2018 from ₹1.53 trillion on 30 June.

"There is a clear change in borrowers' behaviour and banks are also more alert in taking up these incidents. A message has been sent to errant borrowers that defaults would not be tolerated," said Arijit Basu, managing director of the State Bank of India.

And this is due to the fear that their companies if not complying to the norms can be referred to the bankruptcy court and finally may lose control of their assets.

Banks were told to begin with the resolution process as and when the borrower defaults on a term loan and have been given 180 days time to recoup it, failing which the account would have to be referred to the National Company Law Tribunal (NCLT).

So, now as the defaults even by a day have to be brought to the notice of RBI, larger companies have now seen paying more heed and making timely re-payments.

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