RBI: Wilful Defaulter norms modified

Companies and individuals who have furnished guarantees for wilful defaulters can also be accused as wilful defaulters, as per the new norms issued by the Reserve Bank of India. The central bank said that not just companies but even individuals who manage companies and other companies within the group can be tagged as wilful defaulter by banks. Additionally, a borrower can be declared wilful defaulter for using funds for purposes other than that for which a loan was taken. Further if an individual on board of a firm is tagged a wilful defaulter, even another firm on whose board he serves cannot avail of bank loans.