Wilful defaulters shall not be eligible for restructuring of credit facility and cannot be on the board on any other company.
“The lender shall, wherever warranted, initiate legal action against the borrowers/ guarantors for foreclosure/ recovery of dues expeditiously,” the draft said. It also proposes a review and finalisation on wilful default aspects within six months of an account being classified as a non-performing asset.
Comments on the draft can be submitted to RBI by October 31.