Published On: Sun, Mar 11th, 2018

Passport details must for loan of Rs 50 cr and above

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2018_3$largeimg11_Sunday_2018_014005888New Delhi : Passport details of borrowers taking loans of Rs 50 crore and more have been mandatory to ensure a swift action in case of fraud and preventing fraudsters from fleeing the country, a top official said today.

Passport details will help banks to take timely action and inform the authorities concerned to prevent fraudsters from fleeing the country.

“Next step on clean and responsible banking. Passport details must for loans above Rs 50 crore. Step to ensure quick response in case of fraud,” Financial Services Secretary Rajiv Kumar tweeted.

For all existing loans of over Rs 50 crore, banks have been asked to collect passport details of borrowers within 45 days, he added.

In the absence of passport details, banks were hamstrung in taking timely action to prevent defaulters from fleeing the country.

Several big defaulters like Nirav Modi, Mehul Choksi, Vijay Mallya and Jatin Mehta have fled the country putting the recovery mechanism in quandary.

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