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Oct 01, 2014
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Central bank able and willing on wilful default
In a bid to improve asset quality in the system, the RBI on Tuesday said it is looking to bring in new guidelines for ‘non-cooperative’ borrowers and also modify its definition of wilful defaulters.
Click here for graph“...the honourable court (Calcutta High Court) had some questions (on) whether all directors could be declared as wilful defaulters and we have looked into that,” governor Raghuram Rajan said, adding the RBI is “in the process of modifying” the definition so that directors, if seen culpable in actively participating or grossly negligent in wilful default, are brought under the ambit of the new definition. At the same time, the changes would address the concerns of the court.
Source -
http://www.financialexpress.com
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