DBR.CID. BC. No.17/20.16.003/2016-17
The Chairmen / Chief Executive
All Scheduled Commercial banks (including RRBs),
All India Financial institutions (EXIM Bank, NHB, NABARD and SIDBI)
Publishing of photographs of
Please refer to our Master Circular on Wilful Defaulters
DBR.CID.BC.No.22/20.16.003/2015-16 dated July 1, 2015 inter
alia outlining the penal measures that should be taken by lending
institutions against the borrowers declared as wilful defaulters.
2. In this context, it has been
observed that some lending institutions have been publishing the
photographs of defaulters/ guarantors in newspapers. In view of the
sensitivity involved and need to prevent the publishing of photographs of
defaulting borrower/ guarantor in an indiscriminate manner, it has been
decided as under:
(i) A lending institution can
consider publication of the photographs of only those borrowers, including
proprietors/ partners /directors / guarantors of borrower firms/ companies,
who have been declared as wilful defaulters following the mechanism set out
in the RBI instructions referred to above. This shall not apply to the
non-whole time directors who are exempted from being considered as wilful
defaulters unless the special conditions, in accordance with these
instructions, are satisfied.
(ii) The lending institutions
shall formulate a policy with the approval of their Board of Directors
which clearly sets out the criteria based on which the decision to publish
the photographs of a person covered in paragraph (i) above will be taken by
them so that the approach is neither discriminatory nor inconsistent.
3. The lending institutions
shall not publish photographs of any other defaulting borrowers.
Chief General Manager