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PSBs told to obtain passport details of borrowers over Rs 50 crore

NEWS WORLD INDIA | 0
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| March 10 , 2018 , 17:37 IST

Following the multi-crore Punjab National Bank (PNB) fraud, public sector banks have been asked to obtain passport details of borrowers taking more than Rs 50 crore so that information is quickly available in case any loan-taker flees the country.

"Public sector banks to collect passport details of all new borrowers of loans more than Rs 50 crore," said Financial Services Secretary Rajiv Kumar in a tweet on Saturday.

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The tweet also added that loan application forms would be suitably modified for this.

The banks have been told to collect passport details of existing borrowers within 45 days.

The tweet said it is a step towards clean banking, ensuring quick response in case of frauds.

Several big defaulters like Nirav Modi, Mehul Choksi, Vijay Mallya among others have fled the country after taking huge loans. Their passport details were available later.

Last week the Cabinet had approved Fugitive Economic Offenders Bill 2018, which would facilitate action against big defaulters.

Finance Minister Arun Jaitley had said: "Under the Bill, all the assets (in the country) of the offender will be confiscated and not only the proceeds of crime. Even unknown assets, if any, would be seized."

This Bill also has a provision to confiscate assets of the offender in the foreign land as well, for which the government would have to make arrangements with different countries.