India directs banks to “name and shame” wilful defaulters

The Indian government on Wednesday asked its banks to “name and shame” wilful defaulters by publishing their photographs and other details on newspapers.

The finance ministry has written a letter to all state-run banks, directing them to take board approvals for publication of photographs of wilful defaulters.

“Lending institutions shall formulate a policy with the approval of their board of directors which clearly set out the criteria for publication of photographs of wilful defaulters,” India’s semi-official news agency

Press Trust of India (PTI) quoting its sources said.

Wilful defaulters are those borrowers who ignore repayment of loans despite having the capacity to do so.

The number of wilful defaulters to public sector banks by the end of 2017 has increased to 9,063 in India.

In February a billionaire jeweller Nirav Modi, his wife Ami, brother Nishal and his business partner and uncle Mehul Choksi left the country after defrauded Punjab National Bank, India’s state-owned multinational banking and financial services company of about 1.77 billion U.S. dollars.

Prior to him, Vijay Mallya, another defaulting Indian businessman fled country after defaulting bank loans worth billions of U.S. dollars.