Question
What is the minimum amount of loan outstanding of a
borrower or a guarantor who has committed wilful default , to be known as a Wilful defaulte r?Solution
wilful defaulter" means
- i. a borrower or a guarantor who has committed wilful default and the outstanding amount is ₹25 lakh and above , or as may be notified by Reserve Bank of India from time to time, and
- ii. where the borrower or a guarantor committing the wilful default is a company, its promoters and the director (s), subject to the provisions of para 4 (1) (c) of the RBI (T reatment of Wilful Defaulters and Large Defaulters) Directions, 2024 . In case of entity (other than companies), persons who are in charge and responsible for the management of the affairs of the entity.
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