भारतीय �रज़वर् ब�क

RESERVE BANK OF INDIA

DRAFT

DoR.SIG.FIN.REC.xx/20.16.003/2023-24 September 21, 2023

Reserve Bank of India

(Treatment of Wilful Defaulters and Large Defaulters)
Directions, 2023

In exercise of the powers conferred under Chapter III-A of the Reserve Bank of
India Act, 1934, Section 21, Section 35-A read with Section 56 of the Banking
Regulation Act, 1949 and Section 11 of the Credit Information Companies
(Regulation) Act, 2005, the Reserve Bank of India being satisfied that it is
necessary and expedient in the public interest to do so, hereby, issues the
Directions hereinafter specified:

Objective

The primary objective of these Directions is to provide for a non-discriminatory and

transparent procedure, while complying with the principles of natural justice for
classifying a borrower as a wilful defaulter by the lenders. The directions also aim to
put in place a system to disseminate credit information about wilful defaulters for
cautioning lenders to ensure that further institutional finance is not made available
to them.

1
 CHAPTER I
PRELIMINARY

1. Short Title and Commencement

(1) These Directions shall be called the Reserve Bank of India (Treatment of
Wilful Defaulters and Large Defaulters) Directions, 2023.

(2) These Directions shall come into force after 90 days from placing it on the
website of the Reserve Bank.

2. Applicability

(1) The provisions regarding wilful defaulters contained in these Directions shall
apply to the ‘lenders’ as defined in these Directions.

(2) Asset Reconstruction Companies (ARCs), and Credit Information Companies

(CICs) shall be bound by these Directions only with regard to the reporting
requirements contained in Chapter III.

(3) The restrictions on further financial accommodation to wilful defaulters shall

apply to all entities regulated by the Reserve Bank, irrespective of whether they fall
within the definition of ‘lender’ as provided in these Directions or not.

(4) The provisions regarding large defaulters contained in these Directions shall
apply to all entities regulated by the Reserve Bank, irrespective of whether they fall
within the definition of ‘lender’ as provided in these Directions or not.

3. Definitions

(1) In these Directions, unless the context or subject otherwise requires, -

(a) “All India Financial Institution (AIFI)” 1 means -

(i) Export Import Bank of India (EXIM Bank);

(ii) National Bank for Agriculture and Rural Development (NABARD);

(iii) National Housing Bank (NHB);

1
Those institutions which are not currently classified as AIFI but were earlier permitted to classify and report a borrower as wilful defaulter shall
not report fresh cases of wilful defaulter and only report the updation/modification, if any, to CICs for the accounts earlier permitted to be
classified as wilful defaulter.

2
 (iv) Small Industries Development Bank of India (SIDBI); and

(v) National Bank for Financing Infrastructure and Development (NaBFID).

(b) “bank” means -

(i) All Commercial Banks 2.

(ii) All Scheduled Primary (Urban) Co-operative Banks,

(iii) All Non - Scheduled Primary (Urban) Co-operative Banks falling under
tier 3 and 4 as per Revised Regulatory Framework - Categorization of
Urban Co-operative Banks (UCBs) for Regulatory Purposes 3.

(iv) Regional Rural Banks, and

(v) Local Area Banks.

(c) “borrower” means one who has availed credit facility from a lender.

(d) “credit facility” means any fund based or non-fund-based facility, which a
lender has extended to the borrower.

(e) “credit information company” (CIC) means a company that has been
granted a certificate of registration under Section 5 of the Credit Information
Companies (Regulation) Act, 2005.

(f) “director identification number (DIN)” shall have the meaning assigned to it
under the Companies Act, 2013.

(g) “director associated at the time of default” means the director of a

company which was classified as a large defaulter/wilful defaulter and who
was associated with the company at the time when the acts of omission or
commission by the company/ its directors led to the default.

2
As defined in para 3(iv) of the Master Direction - Classification, Valuation and Operation of Investment Portfolio of
Commercial Banks (Directions), 2021 - DOR.MRG.42/21.04.141/2021-22 dated August 25, 2021.

3
As indicated in the circular DOR.REG.No.84/07.01.000/2022-23 dated December 01, 2022 on Revised Regulatory
Framework - Categorization of Urban Co-operative Banks (UCBs) for Regulatory Purposes.

3
(h) “diversion of funds” means and includes the under- noted occurrences:

(i) utilisation of short-term working capital funds for long-term purposes not
in conformity with the terms of sanction of credit facility;

(ii) deploying funds availed using credit facility for the creation of assets
other than those for which the credit was sanctioned;

(iii) transferring funds availed using credit facility to the subsidiaries/group

companies or other entities, by whatever modality;

(iv) routing of funds through any lender other than the lender or members of
consortium without prior written permission of the lender or the members of
consortium;

(v) investing funds availed using credit facility in other companies/entities by

way of acquiring equities/debt instruments without the approval of lender or
the members of consortium; and

(vi) shortfall in the deployment of funds vis-à-vis the amounts disbursed/

drawn under the credit facility and the difference not being accounted for.

(i) “guarantor” is a person/ entity who has guaranteed the credit facility.

(j) “identification committee” means the committee constituted by a lender for

identifying a wilful defaulter and shall comprise of:

(i) a Whole-time Director other than the Chief Executive Officer (CEO) as
chairperson and two senior officials as members, not below two ranks of the
chairperson of the committee.

(ii) where there is no post of a Whole-time Director, as in the case of foreign

banks having presence in India only through branches, it shall comprise of an
officer in the rank just below the Country Head/ CEO as chairperson and two
senior officials as members, not below two ranks of the chairperson of the
committee.

Provided that in respect of credit facilities below a suitable threshold, lenders

may, as per their board-approved policy, set up the identification committee,

4
 with an officer just below the rank of the Whole-time Director as chairperson
and two senior officials as members, not below two ranks of the chairperson of
the committee.

Note: (i) The committee shall not be chaired by the person who had
sanctioned the credit facility and shall not include any person who was a
member of credit sanctioning committee.

(ii) Lenders can set up multiple Identification Committees, with similar

constitution, for identification of wilful defaulters.

(k) “independent director” shall have the meaning assigned to it under the
Companies Act, 2013.

(l) “large defaulter” means a defaulter with an outstanding amount of ₹1 crore

and above, and whose account has been classified as doubtful or loss, in
accordance with the instructions issued by the Reserve Bank in Master
Circular - Prudential norms on Income Recognition, Asset Classification and
Provisioning pertaining to Advances dated October 1, 2021 (as amended from
time to time).

(m) “lender” means an AIFI, a bank, or NBFC which has granted a credit facility
to the borrower.

(n) “nominee director” means a director nominated by a lender, a regulatory

authority, or the Central or a State Government.

Explanation: “Nominee director” in the case of:

(i) corresponding new bank shall mean any director nominated by the
Central Government under clause (g) or clause (h) of sub-section (3) of
section 9 of the Banking Companies (Acquisition & Transfer of Undertakings)
Act, 1970/1980;

(ii) State Bank of India shall mean any director nominated by the Central
Government under clause (d) of section 19 of the State Bank of India Act,
1955.

5
(o) “non-banking financial company (NBFC)” means all NBFCs falling under
NBFC-Middle Layer (NBFC-ML) and above layers as per Scale Based
Regulatory framework 4, to the extent applicable to such NBFCs.

(p) “professional director” means a director as referred to in para 1.6 of the

Master Circular UBD.CO.BPD.MC.No.8/12.05.001/2013-14 on Board of
Directors – UCBs dated July 1, 2013 (as modified from time to time).

(q) “promoter” means a person who has been named as such in a prospectus or
is identified by the company in the annual return, and has (i) control over the
affairs of the company, directly or indirectly, whether as a shareholder, director
or otherwise; and/or (ii) in accordance with whose advice, directions or
instructions, the Board of Directors of the company is accustomed to act.

(r) “review committee” means the committee constituted by a lender for the
purpose of reviewing the proposal of the identification committee and shall
comprise of:

(i) the Whole-time Director who is the Chief Executive Officer (CEO) of the
lender as chairperson and two independent directors [professional directors in
case of Primary (Urban) Co-operative Banks] as members. The chairperson
shall be an independent director if the credit facility has been sanctioned by
the CEO.

(ii) where there is no post of a Whole-time Director, as in the case of foreign

banks having presence in India only through branches, the committee shall
comprise of Country Head/ CEO as chairperson and two senior officials as
members, not below one rank of the chairperson of the committee.

Provided that in respect of credit facilities below a threshold, lenders may, as

per their board-approved policy constitute a review committee formulated by
the lender with an officer of the rank of Whole Time Director as the
chairperson and two senior officials as members, not below two ranks of the
chairperson of the committee.

4
As provided in notification DOR.CRE.REC.No.60/03.10.001/2021-22 dated October 22, 2021 on Scale Based Regulation
(SBR): A Revised Regulatory Framework for NBFCs.

6
 Notes:

(A) The chairperson shall not be the person who had sanctioned the credit
facility or has acted as a member of the sanctioning committee.

(B) The chairperson shall be at least one rank above the chairperson of the
identification committee.

(C) The committee shall not be comprised of members who are part of the
identification committee.

(s) “siphoning of funds” shall be construed to have occurred if any funds

availed using credit facility from lenders are utilised for purposes unrelated to
the operations of the borrower.

(t) “wilful default”

(i) by a borrower shall be deemed to have occurred when the borrower

defaults in meeting payment/ repayment obligations to the lender and any one
or more of the following features are noticed:

(A) the borrower has the capacity to honour the said obligations;

(B) the borrower has diverted the funds availed under the credit facility
from lender;

(C) the borrower has siphoned off the funds availed under the credit
facility from lender;

(D) the borrower has disposed of immovable or movable assets given

for the purpose of securing the credit facility without the knowledge of the
lender;

(E) The borrower has failed in its commitment to the lender to infuse
equity despite having the ability to infuse the equity, although the lender
has provided loans or certain concessions to the borrower based on this
commitment and other covenants and conditions.

7
 (ii) by a guarantor shall be deemed to have occurred if the guarantor does
not honour the guarantee when invoked by the lender, despite having
sufficient means to make payment of the dues.

(u) “wilful defaulter” means

(i) a borrower or a guarantor who has committed wilful default and the
outstanding amount is ₹25 lakh and above, or as may be notified by Reserve
Bank of India from time to time, and

(ii) where the borrower committing the wilful default is a company, its
promoters and the director(s) associated at the time of default, and in case of
entity (other than companies), persons who are in charge and responsible for
the management of the affairs of the entity.

(2) Words and expressions used herein and not defined in these Directions, but
defined in the Reserve Bank of India Act, 1934 or the Banking Regulation Act, 1949
or the Credit Information Companies (Regulation) Act, 2005, or the Companies Act,
2013, shall have the meanings assigned to them in those Acts.

8
 CHAPTER II
Treatment of Wilful Defaulters

4. General requirements

(1) Mechanism for Identification and Classification of Wilful Defaulters

A lender shall identify and classify a person as a ‘wilful defaulter’ by following the
procedure enumerated in these Directions.

(a) (i) The evidence of wilful default shall be examined by an Identification

Committee.

(ii) If the Identification Committee is satisfied that an event of wilful default

has occurred, it shall issue a show-cause notice to borrower/ guarantor/
promoter/ director/ persons who are in charge and responsible for the
management of the affairs of the entity, and call for the submissions.

(iii) After considering the submissions and where satisfied, the Identification
Committee shall make a proposal to the review committee for classification as
a wilful defaulter by explaining the reasons in writing.

(iv) The borrower/ guarantor/ promoter/ director/ persons who are in charge
and responsible for the management of the affairs of the entity shall thereafter
be suitably advised about the proposal to classify them as wilful defaulter
along with the reasons therefor.

(v) An opportunity shall be provided to borrower/ guarantor/ promoter/

director/ persons who are in charge and responsible for the management of
the affairs of the entity for making a written representation against such a
proposal within a reasonable time (say 15 days) to the Review Committee.

(vi) The proposal of the Identification Committee along with the written
representation received shall be considered by the Review Committee.

(vii) The Review Committee shall provide an opportunity for a personal

hearing also to the borrower/ guarantor/ promoter/ director/ persons who are in
charge and responsible for the management of the affairs of the entity.
However, if the opportunity is not availed or if the personal hearing is not
attended by the borrower/ guarantor/ promoter/ director/ persons who are in

9
 charge and responsible for the management of the affairs of the entity, the
Review Committee shall, after assessing the facts or material on record,
including written representation, if any, consider the proposal of the
Identification Committee and take a decision.

(viii) The Review Committee shall pass a reasoned order and the same shall
be communicated to the wilful defaulter.

Explanation: If the Identification Committee concludes that the borrower/

guarantor/ promoter/ director/ persons who are in charge and responsible for
the management of the affairs of the entity, does not qualify for classification
as a wilful defaulter, the review committee need not be set up.

(b) (i) Lenders shall formulate the guidelines, based on their board-approved
policy, for nominating authorized officers, who would issue the show cause notice
and serve written order on behalf of the Identification Committee and Review
Committee respectively.

(ii) The show-cause notice and the order served by the authorised officers
shall clearly state that this has the approval of the competent authority i.e.
identification/review committee.

(c) A non-whole-time director, including an independent director/ nominee

director, shall not be considered as wilful defaulter unless it is conclusively
established that:

(i) the wilful default by the borrower or the guarantor has taken place with
their consent or connivance or

(ii) he/ she was aware of the fact of wilful default by the borrower or the
guarantor, as revealed from the proceedings recorded in the minutes of the
meeting of the Board or a Committee of the Board, but has not recorded his/
her objections to the same.

(d) The name of a non-whole-time director/ independent director/ nominee

director who has been classified as a wilful defaulter shall be reported in Annex II
indicating that he is a non-whole-time director/ independent director/ nominee
director.

10
(2) Review of accounts for identification of wilful default

(a) The lender shall examine the ‘wilful default’ aspect in all accounts with
outstanding amount of ₹25 lakh and above or as may be notified by Reserve Bank
of India from time to time, and complete the process of classification/ declaring the
borrower as a wilful defaulter within six (6) months of the account being classified as
NPA (as defined in the Master Circular DOR.No.STR.REC.55/21.04.048/2021-22
on Prudential norms on Income Recognition, Asset Classification, and Provisioning
pertaining to Advances dated October 1, 2021, as amended from time to time).

(b) In respect of accounts where ‘wilful default’ was not observed during the initial
examination as mentioned at para 4(2)(a) above, the aspects regarding ‘wilful
default’ shall be subsequently re-examined in terms of the board approved policy of
the lender at a periodicity as may be specified by the board.

5. Specific measures against wilful defaulters

(1) Criminal action by the lenders

Based on the facts and circumstances of each case, lenders can examine whether
criminal action against wilful defaulters under the provisions of the applicable law, is
warranted.

(2) Publishing of photographs of wilful defaulters

As specified in circular DBR.CID.BC.No.17/20.16.003/2016-17 on ‘Publishing of

photographs of Wilful defaulters’ dated September 29, 2016, the lenders shall
formulate a non-discriminatory board-approved policy that clearly sets out the
criteria based on which the photographs of persons classified and declared as wilful
defaulter shall be published.

(3) Penal and other measures against wilful defaulters

The penal provisions mentioned below shall be implemented by the lenders.

(a) Debarment from institutional finance

(i) No additional credit facility shall be granted by any lender to a wilful

defaulter or any entity with which a wilful defaulter is associated.

11
 Explanation:

(a) If the wilful defaulter is a company, another company will be deemed

to be associated with it, if that company is -

i. a subsidiary company as defined under clause 2 (87) of the

Companies Act, 2013.

ii. falls within the definition of a ‘joint venture’ or an ‘associate

company’ under clause (6) of section 2 of the Companies Act, 2013.

(b) If the wilful defaulter is a natural person, all entities in which he is

associated as promoter, or director, or as one in charge and responsible
for the management of the affairs of the entity shall be deemed to be
associated.

(ii) The bar on additional credit facility shall be effective upto a period of one
(1) year after the name of wilful defaulter has been removed from the List of
Wilful Defaulters (LWD) by the lender.

(iii) In addition, no credit facility shall be granted for floating of new ventures
by any lender to a wilful defaulter or any entity with which a wilful defaulter is
associated for a period of five (5) years after the name of wilful defaulter has
been removed from the LWD by the lender.

(b) Ineligible for restructuring

(i) Wilful defaulters shall not be eligible for restructuring of credit facility.

(ii) In cases where the existing promoters are replaced by new promoters in
terms of directions contained in circular ‘Prudential Framework for Resolution
of Stressed Assets’ dated June 7, 2019 (as amended from time to time) and
the borrower company is totally delinked from such erstwhile promoters/
management, lenders may take a view on restructuring such accounts based
on their viability, without prejudice to the continuance of criminal action against
the erstwhile promoters/ management.

12
(c) Incorporation of covenant

(i) The lender shall incorporate a covenant in the agreement while

extending credit facility to a borrower that it shall not induct on its board a
person whose name appears in the LWD.

(ii) In case such a person is found to be on its board, it would take

expeditious and effective steps for removal of such a person from the board
within 90 days from the date of receipt of such notice from the lender.

(iii) Under no circumstances shall a lender renew/ enhance/ provide fresh

credit facilities to such a borrower so long as the director whose name appears
in the LWD continues on its board.

(d) Initiation of legal action

The lender shall, wherever warranted, initiate legal action against the
borrowers/ guarantors for foreclosure/ recovery of dues expeditiously.

6. Provision for a transparent mechanism

The lender shall put in place a transparent mechanism for the entire process of
identification of wilful defaulters so that the penal provisions are applied in a fair
manner and the scope for discretion is obviated.

7. Role of Internal Audit

(1) The lender shall require their internal auditors to specifically look into
adherence to instructions for classifying a borrower as a wilful defaulter.

(2) The Audit Committee of the lender shall periodically review the cases of wilful
default and recommend steps to be taken to prevent such occurrences and their
early detection should these occur.

8. Liability of a Guarantor

(1) As per Section 128 of the Indian Contract Act, 1872, the liability of the
guarantor is coextensive with that of the principal debtor unless it is otherwise
provided by the contract.

13
(2) When a default happens in making payment/repayment by the principal
debtor, the lender will be able to proceed against the guarantor even without
exhausting the remedies against the principal debtor.

(3) Where a lender has made a claim on the guarantor on account of the default
made by the principal debtor, the liability of the guarantor is immediate.

(4) In case the said guarantor refuses to comply with the demand made by the
lender, such guarantor shall also be considered for classification as a wilful
defaulter by following the mechanism as set out in para 4 of these Directions.

(5) In cases where guarantees furnished by the companies within the Group on
behalf of the wilfully defaulting units are not honoured when invoked by the lenders,
such Group companies should also be considered for classification as willful
defaulter by following the mechanism set out in para 4 of these Directions.

(6) While dealing with the wilful default of a single borrowing company in a Group,
the lenders should consider the track record of the individual company, with
reference to its repayment performance to its lender.

(7) The above instructions on Guarantor shall apply with effect from September 9,
2014, and not to cases where guarantees were taken prior to this date. Lenders
shall ensure that this position is made known to all prospective guarantors at the
time of accepting guarantees.

14
 CHAPTER III
Reporting of Wilful Defaulters and Large Defaulters

9. Reporting and Dissemination of Credit Information on Large Defaulters

(1) The provisions regarding large defaulters shall apply to all entities regulated by
the Reserve Bank, irrespective of whether they fall within the definition of ‘lender’ as
provided in these Directions or not.

(2) All entities regulated by the Reserve Bank, including ‘lenders’, shall submit
information in Annex I to all credit information companies (CICs) in respect of the
large defaulters at monthly intervals -

(a) a list of suit filed accounts of large defaulters; and

(b) a list of non-suit filed accounts of large defaulters

(3) For calculating the cut-off point of ₹1 crore, the unapplied interest, if any, shall
also be included. In the case of suit-filed accounts, the cut-off point shall relate to
the amount for which the suits have been filed.

(4) The CICs shall provide access to the list of non-suit filed accounts of large
defaulters to all credit institutions as defined in the Credit Information Companies
(Regulation) Act, 2005.

(5) The CICs shall display the list of suit-filed accounts of large defaulters on their
website.

Explanation: (a) For the purposes of these Directions, the term ‘suit filed
accounts’ shall mean those accounts in respect of which lenders regulated by
the Reserve Bank have approached courts or tribunals (including under
Insolvency and Bankruptcy Code, 2016) for recovery of their dues, and
proceedings are pending.

(b) Accounts shall be treated as suit filed if any application, appeal or

execution is pending in continuation of the original recovery proceedings.

(c) Suit filed accounts shall be deemed to include accounts in which

SARFAESI proceedings or revenue recovery proceedings or proceedings for
recovery under Acts governing co-operative societies are initiated and

15
 pending, and shall include the account of a debtor against whom resolution or
liquidation proceedings have been initiated and are continuing.

10. Reporting and Dissemination of Credit Information on Wilful Defaulters

(1) All lenders shall submit at monthly intervals, information in Annex II to all CICs
in respect of the wilful defaulters as defined in para 3.1. (u) of these directions:

(a) a LWD of suit filed accounts

(b) a LWD of non-suit filed accounts

(2) The lender, or the ARC to which the account has been transferred, shall
inform all CICs the removal of the name of the wilful defaulter from the LWD,
promptly and not later than 30 days, from the date when the outstanding amount
falls below the threshold of ₹25 lakh or as notified by Reserve Bank of India from
time to time, subject to the provision in para 11 (2) below.

(3) Every CIC shall display the suit-filed and non-suit filed accounts of LWD on its
website.

(4) Cases of wilful defaults at overseas branches of banks incorporated in India

shall be reported, if such disclosure is not prohibited under the laws of the host
country.

11. Treatment of compromise settlements

(1) Any account included in LWD, where the lender has entered into a
compromise settlement with the borrower, shall be removed from the LWD only
when the borrower has fully paid the compromise amount 5.

(2) Till such time as only part payment is made, name of the borrower shall not be
removed from the LWD even if the outstanding amount becomes less than the
threshold of ₹25 lakh or as notified by Reserve Bank of India from time to time.

(3) The compromise settlement with the wilful defaulter shall be in terms of the
board approved policy of the lender. Such policy shall include guidelines on staff

5
In cases where a lending institution decides to cancel the settlement due to non-adherence to the terms of the settlement
and revises the amount payable by the borrower, the reporting shall be with reference to the revised amount.

16
accountability examination, reporting of the compromise/ settlement to the board,
higher upfront payment if any, etc.

(4) The compromise settlement shall be without prejudice to the continuation of

the legal proceedings, including criminal proceedings, against the wilful defaulter.

12. Treatment of defaulted loans sold to the other lenders and ARCs

(1) The lender shall complete the investigation from a wilful default angle in every
case before transferring the credit facility to other transferees.

(2) In a case where wilful default is established, lenders shall report it in the LWD
to CICs before selling the asset to other lenders/ ARCs.

(3) The details of the reporting done must be conveyed to other lenders/ ARCs
and they shall be responsible for reporting it to the CICs thereafter.

(4) Sale to other lenders/ ARCs shall not be treated as recovery, as the loan
amount is not yet recovered.

(5) The “transferee” lenders/ ARCs shall continue to report the account as a wilful
defaulter until the balance remaining to be recovered in their account plus the
amount written off by the “transferor” lender falls below the threshold of ₹25 lakh or
as notified by Reserve Bank of India from time to time.

13. Treatment of accounts where resolution is done under Insolvency and

Bankruptcy Code (IBC)/ Resolution framework guidelines issued by the
Reserve Bank

(1) In case an account which is included in LWD and has subsequently

undergone a resolution [either under IBC or under the Prudential Framework for
Resolution of Stressed Assets dated June 7, 2019 (as amended from time to time)
issued by the Reserve Bank] resulting in a change in the management and control
of the entity/ business enterprise, the name of such a wilful defaulter shall be
removed from the LWD after implementation of the resolution plan under IBC or
aforesaid prudential framework.

(2) The penal measures as detailed in para 5 (3) (a) shall not be applicable to
entities/ business enterprises after implementation of the resolution plan under IBC
or aforesaid prudential framework.

17
(3) The penal measure detailed in para 5 (3) (a) shall continue to apply to the
erstwhile promoter(s)/ director(s)/ guarantor(s)/ persons who were in charge and
responsible for the management of the affairs of the entity/ business enterprise.

14. Responsibility for Correct Reporting

(1) The responsibility for reporting correct information and also ensuring the
accuracy of facts and figures rests with the concerned lender.

(2) The lenders while furnishing information to CICs shall ensure the accuracy of
the particulars of the directors, and wherever possible, by cross-checking with the
database maintained by the Registrar of Companies.

15. Reporting of Guarantors

The lenders shall report as wilful defaulters/large defaulters, as the case may be,
the details of guarantors who have failed to honour the commitments thereunder
when invoked. The details shall be reported as per Annex I and II.

16. Reporting of Directors

(1) In case of business enterprises registered as companies under the Companies

Act, 2013, the lenders shall also report in the Director column of Annex I and II, the
full names of the directors associated with the borrower at the time of default to
facilitate better identity of persons concerned, subject to the provisions of these
directions.

(2) In order to ensure that directors are correctly identified and in no case,
persons whose names appear to be similar to the names of directors appearing in
the LWD are wrongfully denied credit facilities on such grounds, lenders shall
include the Director Identification Number (DIN) as one of the fields in the data
submitted in Annex I and II, by them to CICs.

18
 CHAPTER IV
Preventive Measures and Role of Auditors

17. Preventive Measures

(1) Credit appraisal

(a) While carrying out the credit appraisal, lender shall verify as to whether the
name of any of the directors of a company/ guarantors/ persons in charge of the
management of affairs of the entity appears in the list of large defaulters/ LWD by
way of reference to DIN/ PAN, etc.

(b) In case of any doubt arising on account of identical names, lender shall use
independent sources for confirmation of the identity of directors rather than seeking
a declaration from the borrowing company.

(2) Monitoring End Use of Funds

(a) In cases of project financing, lenders should ensure end use of funds by, inter
alia, obtaining certification from the Chartered Accountants for the purpose. The
lenders must not depend solely on the certificates issued by the Chartered
Accountants but also strengthen their credit risk management system and internal
controls to enhance the quality of their loan portfolio. Further, in all cases, especially
in the case of short-term corporate/ clean loans, such an approach must be
supplemented by 'due diligence’ on the part of lenders themselves, and to the
extent possible, such loans must be limited only to those borrowers whose integrity
and reliability are above board.

(b) The requirements and related appropriate measures in ensuring the end-use
of funds by the lenders shall form a part of their loan policy document. An illustrative
list of measures for monitoring and ensuring end-use of funds by lenders are:

(i) Meaningful scrutiny of quarterly progress reports/ operating statements/

balance sheets of the borrowers;

(ii) Regular inspection of borrowers’ assets charged to the lender as

security;

(iii) Periodic scrutiny of borrowers’ books of accounts and the ‘no-lien’

accounts maintained with other lenders;

19
 (iv) Periodic visits to the assisted units;

(v) System of periodic stock audit, in case of working capital finance;

(vi) Periodic comprehensive management audit of the ‘credit’ function of the

lender, so as to identify the systemic weaknesses in their credit administration.

(c) The lender shall closely monitor the end-use of funds and obtain certificates
from borrowers certifying that the funds have been utilised for the purpose for which
they were obtained. In case of the wrong certification by the borrowers, the lender
shall consider initiating appropriate legal proceedings, including criminal action
wherever necessary, against the borrowers.

18. Role of Statutory Auditors

(a) In case any falsification of accounts on the part of the borrowers is observed
by the lender, and the auditors are found to be negligent or deficient in conducting
the audit, the lender shall consider lodging a formal complaint against the statutory
auditors of the borrowers with the National Financial Reporting Authority (NFRA)/
Institute of Chartered Accountants of India (ICAI) to enable them to examine and fix
accountability of the auditor.

(b) Pending disciplinary action by NFRA/ ICAI, the complaints shall be forwarded
to the Reserve Bank (Department of Supervision, Central Office) and Indian Banks’
Association (IBA). Before reporting to the Reserve Bank and IBA, lenders shall
satisfy themselves of the involvement of concerned auditors and also provide them
with an opportunity of being heard. In this regard, the lenders should follow normal
procedures and processes, which shall be suitably recorded.

(c) Based on such information received from lenders, IBA shall, in turn, prepare a
caution list of such auditors for circulation among the lenders, who must consider
this aspect before assigning any work to them.

(d) With a view to monitoring the end-use of funds, if the lender desires a specific
certification from the borrowers’ auditors regarding diversion/siphoning of funds by
the borrowers, the lender should award a separate mandate to the auditors for the
purpose. To facilitate such certification by the auditors, the lenders shall ensure that

20
appropriate covenants in the loan agreements are incorporated to enable the award
of such a mandate by the lenders to the auditor.

(e) In addition to the above and with a view to preventing diversion/ siphoning of
funds by the borrowers, the lenders are free to engage their own auditors for such
specific certification without relying on certification given by borrowers’ auditor.

(f) Depending upon the nature of the borrowers’ acts underlying the wilful default
and the quality of evidence available with the lenders in the normal course, the
lender shall consider commissioning a forensic audit of the affairs of the borrowers
and their books of accounts, in respect of accounts with an outstanding above a
threshold fixed by the board approved policy of the lender.

19. Role of third parties

(a) As prescribed in para 8.12.4 of the Master Direction on Frauds – Classification

and Reporting by commercial banks and select FIs dated July 01, 2016 (as updated
from time to time), in case of wilful defaults also there should be some
accountability for the third parties engaged by the lender, if they have played a vital
role in credit sanction/ disbursement and are found negligent or deficient in their
work or have facilitated the wilful default by the borrower.

(b) The lender shall forward the details of these third parties to the Indian Banks’
Association (IBA) for records. Based on such information, IBA shall, in turn, prepare
caution lists of such third parties for circulation among the lenders who shall
consider this aspect before assigning any work to them.

(c) Before reporting to IBA, lenders have to satisfy themselves of the involvement
of concerned third parties and also provide them with an opportunity of being heard.
In this regard, the lenders are advised to follow due process, which shall be suitably
recorded.

21
 CHAPTER V
Repeal Provisions

20. With these Directions coming into force, the instructions/ guidelines contained
in the circulars mentioned in the Appendix, issued by the Reserve Bank stand
repealed.

21. All approvals/ acknowledgments given under the above circulars shall be valid
as if given under these Directions.

22. All acts done under the repealed circulars till the date of coming into force of
these Directions shall be valid.

22
 Annex I

Format for submission of Suit filed / Non-suit filed accounts for Large Defaulters
of ₹1 crore and above to all CICs on monthly or more frequent basis

Field Field Name Type Width Description Remarks

1 SCTG Numeric 1 Category of I. Number 1/2/4/6/8 should be

fed

1. SBI

2. Nationalised banks

3. Co-operative Banks

4. Foreign Banks

5. Regional Rural Banks

6. Private Sector banks and

Small Finance Banks

7. NBFCs and HFCs

8. Financial Institutions

9. Others

2. BKNM Character 40 Name of

bank/FI

3. BKBR Character 30 Branch name Name of the branch should be

fed in place of branch code
no.

4. STATE Character 15 Name of state Name of state in which

branch is situated

5. SRNO Numeric 4 Serial No.

6. PRTY Character 45 Name of party The legal name

7. REGADDR Character 96 Registered Registered office address

address

8. OSAMT Numeric 6 Outstanding

amount in ₹
lakh

23
 (rounded-off)

9. SUIT Character 4 Suit filed or Type ‘SUIT’ in case suit is

not filed. For other cases this field
should be kept blank.

10. ASSETCLASS Character 5 Asset Fixed

classification
* 'DOUBT' for doubtful A/c.
* 'LOSS' for loss A/c.

However, in case of suit-filed

accounts, category of asset
classification may be
indicated as 'DOUBT'/
'LOSS'/'SUBST'/ 'STD' as the
case may be, where 'SUBST'
and 'STD' stand for sub-
standard and standard
accounts respectively

11. DATECLASS Character 5 Date of Month in which the account

classification was classified as
'DOUBT'/'LOSS/
SUBSTD/STD' in the format
'mmmyy' where mmm stand
for the first 3 characters of the
month. As this field is
'character' type, the format is
not sensitive to the date and
the Y2K is not relevant. The
date of classification 'march
2000' should be filled up as
'MAR00'.

12. OTHER_BK Character 40 Name of other The names of other banks/FIs

banks/ FIs from whom the party has
availed credit facility should
be indicated. The names may
be fed in abbreviated form
e.g. BOB for Bank of Baroda,
SBI for State Bank of India
etc.

13. DIR1 Character 24 Name of If total number of directors

director exceed 14, the name of
additional directors may be
14. DIN_DIR1 Numeric 8 digit entered in blank spaces
Director available in the other
Identification directors' columns.

24
 Number

15 DIR1 PAN Alpha 10 PAN

Numeric

16 DIR2 Character 24 Name of

director

17 DIN_DIR2 Numeric 8 digit

Director
Identification
Number

18 DIR2 PAN Alpha 10 PAN

Numeric

19 DIR3 Character 24 Name of

director

20 DIN_DIR3 Numeric 8 digit

Director
Identification
Number

21 DIR3 PAN Alpha 10 PAN

Numeric

22 DIR4 Character 24 Name of

director

23 DIN_DIR4 Numeric 8 digit

Director
Identification
Number

24 DIR4 PAN Alpha 10 PAN

Numeric

25 DIR5 Character 24 Name of

director

26 DIN_DIR5 Numeric 8 digit

Director
Identification
Number

27 DIR5 PAN Alpha 10 PAN

Numeric

25
28 DIR6 Character 24 Name of
director

29 DIN_DIR6 Numeric 8 digit

Director
Identification
Number

30 DIR6 PAN Alpha 10 PAN

Numeric

31 DIR7 Character 24 Name of

director

32 DIN_DIR7 Numeric 8 digit

Director
Identification
Number

33 DIR7 PAN Alpha 10 PAN

Numeric

34 DIR8 Character 24 Name of

director

35 DIN_DIR8 Numeric 8 digit

Director
Identification
Number

36 DIR8 PAN Alpha 10 PAN

Numeric

37 DIR9 Character 24 Name of

director

38 DIN_DIR9 Numeric 8 digit

Director
Identification
Number

39 DIR9 PAN Alpha 10 PAN

Numeric

40 DIR10 Character 24 Name of

director

41 DIN_DIR10 Numeric 8 digit

26
 Director
Identification
Number

42 DIR10 PAN Alpha 10 PAN

Numeric

43 DIR11 Character 24 Name of

director

44 DIN_DIR11 Numeric 8 digit

Director
Identification
Number

45 DIR11 PAN Alpha 10 PAN

Numeric

46 DIR12 Character 24 Name of

director

47 DIN_DIR12 Numeric 8 digit

Director
Identification
Number

48 DIR12 PAN Alpha 10 PAN

Numeric

49 DIR13 Character 24 Name of

director

50 DIN_DIR13 Numeric 8 digit

Director
Identification
Number

51 DIR13 PAN Alpha 10 PAN

Numeric

52 DIR14 Character 24 Name of

director

53 DIN_DIR14 Numeric 8 digit

Director
Identification
Number

54 DIR14 PAN Alpha 10 PAN

27
 Numeric

55 Guarantor Character 100 Name of the

Guarantor

56 CIN_GUA Alpha 21 Corporate Only in case of legal entities

numeric identification
number of
guarantor
entity

57 PAN_GUA Alpha 10 Permanent In case of individual /legal

Numeric account entities
number

The data / information should be submitted in the above format on FTP Platform / CD.
While submitting the CD, the lenders should ensure that:

• the CD is free from virus and is readable.

• the CD is labelled properly indicating name of the bank, name of the list and
period to which the list belongs, and the name of the list indicated on label
and in the letter are same

• the name and width of each of the fields and order of the fields is strictly as
per the above format.

• in case of Government undertakings, instead of giving names of

Chairman/Director, etc., a legend 'Govt. of _______ undertaking' has been
mentioned.

• the names of nominee directors of banks/FIs/Central Govt./State Govt. have

not been included.

• the records with outstanding amount of less than ₹1 crore have not been
included.

• the use of following types of words have been avoided (as the fields cannot
be properly indexed): 'M/s.', 'Mr.', 'Shri' etc.

• the words 'Mr.', 'Smt.', 'Dr.', etc. have been fed at the end of name of the
person, if applicable.

28
• all the records are completely filled up and none of the fields (except for
some of the fields from DIR1 to DIR14) is kept blank.

• certificate signed by a sufficiently senior official stating that 'the list of

defaulters has been correctly compiled after duly verifying the details thereof
and the Reserve Bank's instructions have been strictly followed' is sent
along with the CD.

• the number of suit filed accounts tally with the number of suit filed accounts
submitted under defaulters list of ₹1 crore and above.

29
 Annex II

Format for submission of data on cases of wilful default (suit-filed and non-
suit filed accounts) to all CICs on a monthly or more frequent basis

Lenders are required to submit data of wilful defaulters (non-suit filed accounts) on
FTP Platform and/or in Compact Disks (CDs) to all CICs on a monthly or more
frequent basis, using the following structure (with the same field names) till further
instructions:

Field Field Name Type Width Description Remarks

1 SCTG Numeric 1 Category of 1 Public Sector Banks

lender
2. Private Sector Banks

3. Foreign Banks

4. Scheduled Primary
(Urban) Co-operative
Banks

5. Non - Scheduled
Primary (Urban) Co-
operative Banks

6. Regional Rural Banks

6. Small Finance Banks

7. NBFCs

8. All India Financial

Institution

9. Others

2 BKNM Character 40 Name of lender Name of the lender

3 BKBR Character 30 Branch name Name of the branch

4 STATE Character 15 Name of state Name of state in which

30
 branch is situated

5 SRNO Numeric 4 Serial No. Serial No.

6 PRTY Character 45 Name of Party The legal name

Registered
7 REGADDR Character 96 Registered Office address
address

8 OSAMT Numeric 6 Outstanding

amount in
₹lakh (Rounded
off)

9 SUIT Character 4 Suit filed or not Type ‘SUIT’ in case suit is

filed. For other cases this
field should be kept blank.

10 OTHER_BK Character 40 Name of other The names of other lenders

lenders from whom the party has
availed credit facility should
be indicated. The names
may be fed in abbreviated
form e.g. BOB for Bank of
Baroda, SBI for State Bank
of India etc.

11 DIR1 Character 40 Name of Full name of Director should

director be indicated.

Director
8 digit Director Identification
Identification
12 DIN_DIR1 Numeric 8 Number of the Director at
Number of
DIR1
DIR1

Alpha
13 DIR1 PAN 10 PAN
Numeric

31
 Name of
14 DIR2 Character 40 As in DIR1
director

Director
8 digit Director Identification
Identification
15 DIN_DIR2 Numeric 8 Number of the Director at
Number of
DIR2
DIR2

Alpha
16 DIR2 PAN 10 PAN
Numeric

Name of
17 DIR3 Character 40 As in DIR1
director

Director
8 digit Director Identification
Identification
18 DIN_DIR3 Numeric 8 Number of the Director at
Number of
DIR3
DIR3

19 DIR3 PAN Alpha 10 PAN

Numeric

Name of
20 DIR4 Character 40 As in DIR1
director

Director
8 digit Director Identification
Identification
21 DIN_DIR4 Numeric 8 Number of the Director at
Number of
DIR4
DIR4

22 DIR4 PAN Alpha 10 PAN

Numeric

Name of
23 DIR5 Character 40 As in DIR1
director

24 DIN_DIR5 Numeric 8 Director 8 digit Director Identification

32
 Identification Number of the Director at
Number of DIR5
DIR5

25 DIR5 PAN Alpha 10 PAN

Numeric

Name of
26 DIR6 Character 40 As in DIR1
director

Director
8 digit Director Identification
Identification
27 DIN_DIR6 Numeric 8 Number of the Director at
Number of
DIR6
DIR6

28 DIR6 PAN Alpha 10 PAN

Numeric

Name of
29 DIR7 Character 40 As in DIR1
director

Director
8 digit Director Identification
Identification
30 DIN_DIR7 Numeric 8 Number of the Director at
Number of
DIR7
DIR7

31 DIR7 PAN Alpha 10 PAN

Numeric

Name of
32 DIR8 Character 40 As in DIR1
director

Director
8 digit Director Identification
Identification
33 DIN_DIR8 Numeric 8 Number of the Director at
Number of
DIR8
DIR8

34 DIR8 PAN Alpha 10 PAN

33
 Numeric

Name of
35 DIR9 Character 40 As in DIR1
director

Director
8 digit Director Identification
Identification
36 DIN_DIR9 Numeric 8 Number of the Director at
Number of
DIR9
DIR9

37 DIR9 PAN Alpha 10 PAN

Numeric

Name of
38 DIR10 Character 40 As in DIR1
director

Director
8 digit Director Identification
Identification
39 DIN_DIR10 Numeric 8 Number of the Director at
Number of
DIR10
DIR10

40 DIR10 PAN Alpha 10 PAN

Numeric

Name of
41 DIR11 Character 40 As in DIR1
director

Director
8 digit Director Identification
Identification
42 DIN_DIR11 Numeric 8 Number of the Director at
Number of
DIR11
DIR11

43 DIR11 PAN Alpha 10 PAN

Numeric

Name of
44 DIR12 Character 40 As in DIR1
director

34
 Director
8 digit Director Identification
Identification
45 DIN_DIR12 Numeric 8 Number of the Director at
Number of
DIR12
DIR12

46 DIR12 PAN Alpha 10 PAN

Numeric

Name of
47 DIR13 Character 40 As in DIR1
director

Director
8 digit Director Identification
Identification
48 DIN_DIR13 Numeric 8 Number of the Director at
Number of
DIR13
DIR13

49 DIR13 PAN Alpha 10 PAN

Numeric

Name of
50 DIR14 Character 40 As in DIR1
director

Director
8 digit Director Identification
Identification
51 DIN_DIR14 Numeric 8 Number of the Director at
Number of
DIR14
DIR14

52 DIR14 PAN Alpha 10 PAN

Numeric

53 Guarantor Character 100 Name of the Full name of guarantor

guarantor/
guarantor
Company

54 CIN_GUA Alpha 21 Corporate Only in case of legal entities

numeric identification

35
 number of
guarantor entity

55 PAN_GUA Alpha 10 Permanent In case of individual / legal

Numeric account entities
number

(1) If the total numbers of directors exceed 14, the name of additional directors may
be entered in blank spaces available in the other directors’ columns.

(2) The data / information should be submitted in the above format on FTP Platform
/ CD. While submitting the CD, the lenders should ensure that:

• the CD is readable and is not corrupted / virus-affected.

• the CD is labelled properly indicating name of the lender, name of the list and
period to which the list belongs, and the name of list indicated on label and in
the letter are same.

• the name and width of each of the fields and order of the fields is strictly as
per the above format.

• records with outstanding amount of less than ₹25 lakh or as may be notified
by Reserve Bank of India from time to time, have not been included.

• no suit-filed account has been included.

• use of following types of words have been avoided (as the fields cannot be
properly indexed): ‘M/s.’, ’Mr.’, ‘Shri’ etc.

• the words ‘Mr.’, ‘Mrs.’, ‘Smt.’, ‘Dr’ etc. have been fed at the end of name of
the person, if applicable.

Except for field "SUIT" and some of the fields from DIR1 to DIR 14, as applicable,
information is completely filled in and columns are not kept blank.

(3) In case of 'Nil' data, there is no need to send any CD and the position can be
conveyed through an email/letter/fax.

36
(4) A certificate signed by a sufficiently senior official stating that ‘the LWD has been
correctly compiled after duly verifying the details thereof and the Reserve Bank’s
instructions in this regard have been strictly followed’ is sent along with the CD.

(5) The technical working group comprising of member banks, IBA and CICs, shall
be deciding the changes in the format as and when required and communicating the
same to the CIs with the approval of the Reserve Bank.

37
 Appendix

List of Circulars repealed with the issuance of Master Direction

Sr.
Circular No. Date Subject
No.
1 DBOD.No.BC.47/20.16.002/94 23.04.1994 Disclosure of Information
Regarding Defaulting Borrowers of
Banks And Financial Institutions
2 DBOD.No.BC.40/20.16.002/94 09.07.1994 Disclosure of Information
Regarding Defaulting [Borrowers of
Banks Financial Institutions
3 DBOD.No.BC.CIS.225/20.16.002 03.02.1995 Disclosure of Information on
/95 Defaulting Borrower.
4 DBOD.CIS.7/20.16.002/95 10.07.1995 Disclosure of Information regarding
Defaulting Borrowers of Banks and
FIs
5 DBOD.No.CIS.32/20.16.002/95- 26.07.1995 Disclosure of Information regarding
96 Defaulting Borrowers of Banks and
Financial Institutions
6 DBOD.No.CIS.BC.92/20.10.001/ 31.08.1995 Collection and Furnishing of Credit
95-96 Information - Section 45C(1) of the
RBI Act, 1934
7 DBOD.No.BC.CIS.(D).135/20.16. 24.11.1995 Disclosure of Information regarding
002/95-96 Defaulting Borrowers
8 DBOD.No.BC.Def./52/20.16.002/ 11.04.1996 disclosure of information -
95-96 defaulters list as on 31.3.1996 on
floppy diskettes and statements of
suit-filed accounts as on 31.3.1996
9 UBD.No.BR.6/16.74.00/95-96 06.05.1996 Disclosure of Information regarding
Defaulting
Borrowers of Banks and Financial
Institutions
10 DBOD.No.BC.DL.71A/20.16.022/ 11.06.1996 Disclosure of Information on
96 Defaulting Borrowers
11 DBOD.No.BC.DL.156/20.16.002/ 06.12.1996 Disclosure of Information on
96 Defaulters
12 DBOD.No.BC.DL.155/20.16.002/ 22.12.1997 Disclosure of Information regarding
97-98 Defaulting Borrowers of Banks &
Financial Institutions - Half-year
ended September 1996
13 DBOD.DL.BC.No.23 24.03.1998 Disclosure of Information -
/20.16.002/98 Submission of List of Suit-filed
Accounts
14 UBD.No.BR.3/16.74.00/98-99 29.07.1998 Disclosure of Information regarding
Defaulting
Borrowers of Banks and Financial
Institutions
15 DBOD.No.BC.DL.106/20.16.002/ 11.11.1998 Submission of List of Defaulters on

38
 98-99 Floppy Diskettes and Submission
of Statement Suit-filed Accounts
16 DBOD.No.DL(W).BC.12/20.16.00 20.02.1999 Collection and Dissemination of
2 (1) /98-99 Information on Cases of Wilful
Default of ₹25 lakh and above
17 DBOD.No.DL.BC.46/20.16.002/9 10.05.1999 Disclosure of information regarding
8-99 defaulting borrowers - Lists of
Defaulters / Suit filed accounts and
Data on Wilful Default
18 DBOD.DL(W)952/20.16.002/98- 27.05.1999 Collection and Dissemination of
99 Information on Cases of Wilful
Default of ₹25 lakh and above.
19 UBD.No.BR.11/16.74.00/98- 30.06.1999 Collection and Dissemination of
99 Information on
Cases of Wilful Default of Rs.
25.00 lakh and above
20 DBOD.No.BC.DL.4/20.16.002/99 21.10.1999 Disclosure of Names of Defaulters
-2000

21 DBOD.No.BC.DL.104/20.16.002/ 23.10.1999 Disclosure of Information in respect

99-2000 of Pending Court Cases by
Borrowers of Banks & FIs
22 DBOD.No.DL.BC.117/20.16.002/ 30.10.1999 Disclosure of Information about
99-2000 Defaulters of ₹1 crore and above -
List of suit-filed Accounts -
Quarterly Updation
23 DBOD NO.DL/240/20.16-002/99- 01.12.1999 Disclosure of names of defaulters
2000
24 DBOD.No.DL(W).BC.161/20.16.0 01.04.2000 Collection and Dissemination of
02/99-2000 information on defaulting borrowers
of banks and Financial Institutions
25 DBOD.No.BC.68/DL/20.16.002/2 12.01.2001 Discloser of names of defaulters -
000-2001 inclusion of the consent clause in
the loan documents
26 DBOD.No.BC.DL/93/20.16.002/2 23.03.2001 Disclosure of Names of Defaulters
000-01

27 DBOD.No.DL.BC.112/20.16.002/ 27.04.2001 Disclosure of Names of Defaulters

2000-01 - Consent Clause in Loan
Documents
28 DBOD.No.BP.BC.115/21.03.038/ 02.05.2001 Filing of Suits to Recover Dues
2000-01 from Wilful Defaulters
29 UBD.NO.BR.2/16.74.00/2001- 31.07.2001 Filing of Suits to Recover Dues
02 from Wilful Defaulters
30 DBOD.No.BC.44/DL/20.16.001/2 15.11.2001 Disclosure of Information on
001-02 Defaulters
31 DBOD.No.DL.BC.54/20.16.001/2 22.12.2001 Collection and dissemination of
001-02 information on defaulters
32 DBOD.No.DL(W).BC.110/20.16.0 30.05.2002 Wilful defaulters and action there
03(1)/2001-02 against
33 DBOD.No.DL.BC.111/20.16.001/ 04.06.2002 Submission of Credit Information to

39
 2001-02 Credit Information Bureau (CIB)
34 UBD.BR.Cir.1/16.74.00/2002-03 01.08.2002 Wilful Defaulters and Action there
against
35 DBOD.No.DL.BO.29/20.16.002/2 01.10.2002 Submission of Credit Information to
002-03 Credit Information Bureau (India)
Ltd - Reporting System and
Introduction of Consent Clause
36 DBOD.No.DL(W).BC.58/20.16.00 11.01.2003 Wilful defaulters and Diversion of
3/2002-03 funds - Action there against
37 DBOD.No.DL.BC.7/20.16.003/20 29.07.2003 Wilful Defaulters and action there
03-04 against
38 DBOD.No.DL.BC.87/20.16.003/2 26.05.2004 Annual Policy Statement : 2004-05
003-04 - Wilful Defaulters - Clarification on
Process
39 DBOD.No.DL.BC.88/20.16.002/2 28.05.2004 Annual Policy Statement : 2004-05
003-04 - Dissemination of Credit
Information - Role of CIBIL
40 DBOD.No.DL.BC.95/20.16.002/2 17.06.2004 Annual Policy Statement for the
003-04 year 2004-05 -
Dissemination of Credit Information
- Role of CIBIL
41 DBOD.No.DL.BC.94/20.16.003/2 17.06.2004 Annual Policy Statement: 2004-05 -
003-04 Wilful Defaulters – Clarification on
Process
42 DBOD.No.DL.BC.16/20.16.003/2 23.07.2004 Checking of wilful defaults and
004-05 measures against Wilful Defaulters
43 DBOD.No.DL.BC.56/20.16.002/2 06.11.2004 Mid-Term Review of Annual Policy
004-05 Statement for the Year 2004-05 -
Dissemination of Credit Information
by CIBIL
44 DBOD.No.BC.DL.75/20.16.002/2 11.03.2005 Collection and Dissemination of
004-05 Information on Defaulting
Borrowers of Banks and Financial
Institutions
45 DBOD.No.DL.11590/20.16.034/2 27.02.2008 Credit Information Companies
007-08 (Regulation) (Removal of
Difficulties) Order, 2008
46 DBOD.No.DL(W)BC.87/20.16.00 28.05.2008 Wilful Defaulters and action there
3/2007-08 against
47 Mail-Box Clarification 17.04.2008 Reporting of accounts under
compromise settlement
48 UBD.PCB.Cir.No.57/16.74.00/20 24.06.2008 Wilful Defaulters and Action there
08-09 against - UCBs
49 DBOD.No.DL.12738/20.16.001/2 03.02.2009 Submission of information about
008-09 List of Defaulters (non-suit filed
accounts) / Wilful Defaulters (non-
suit filed accounts) on Compact
Disks.
50 DBOD.No.DL.BC.110/20.16.046/ 11.06.2010 Submission of data to Credit
2009-10 Information Companies - Format of
data to be submitted by Credit

40
 Institutions
51 DBOD.No.CID.BC.40/20.16.046/ 21.09.2010 Submission of credit data to Credit
2010-11 Information Companies – Inclusion
of Director Identification Number
(DIN)
52 DBOD.No.CID.BC.30/20.16.042/ 05.09.2011 Submission of Credit Information to
2011-12 credit Information Companies –
Defaulters of ₹1 crore and above
and Wilful Defaulters of ₹25 lakh
and above- Dissemination of Credit
Information of suit filed accounts.
53 UBD.CO.BPD.Cir.No.19/09.11.2 13.02.2012 Submission of Credit Information to
00/2011-12 Credit Information Companies -
Defaulters of 1 crore and above
and Wilful Defaulters of 25 lakh
and above - Dissemination of
Credit information of suit-filed
Accounts
54 DBOD.No.CID.BC.27/20.16.042/ 01.07.2013 Submission of Credit Information to
2013-14 Credit Information Companies -
Withdrawal of 'Consent Clause'
55 DBOD.CID.BC.128/20.16.003/20 27.6.2014 Defaulters of ₹1 crore and above
13-14 (non-suit filed accounts) and Wilful
Defaulters of ₹25 lakh and above
(non-suit filed accounts) – Changes
in reporting to RBI/CICs
56 DBOD.No.CID.41/20.16.003/201 09.09.2014 Guidelines on Wilful Defaulters –
4-15 Clarification regarding Guarantor,
Lending institution and Unit
57 DBR.No.CID.BC.54/20.16.064/20 22.12.2014 Non-Cooperative Borrowers
14-15

58 DBR.No.CID.BC.89/20.16.003/20 23.04.2015 Collection and Dissemination of

14-15 Information on Defaulters
59 DBR.No.CID.BC.90/20.16.003/20 23.04.2015 Collection and Dissemination of
14-15 Information on Wilful Defaulters
60 Mail box clarification 05.06.2015 Wilful defaulters-setting up of the
Review Committee
61 Mail box clarification 05.06.2015 Defaulters/Wilful Defaulters –
Removal of the names of Non-
whole time directors for already
classified and reported accounts.
62 DBR.CID. BC. No.17/20.16.003/ 29.10.2016 Publishing of photographs of Wilful
2016-17 defaulters

41