Suit-Filed Accounts - An Overview
CIBIL - India's first credit information bureau - has been established
to cater to the credit information requirement of the financial
sector and serves as an effective mechanism for curbing the growth
of Non-Performing Assets (NPAs). The Reserve Bank of India (RBI)
constituted a Working Group in December 2001 to examine the possibility
of CIBIL performing the role of collecting and disseminating information
on suit-filed accounts and list of defaulters, being reported to
RBI by banks and notified Financial Institutions (FIs).
RBI then decided to implement some of the recommendations of the
Working Group, which satisfied the existing legal framework of the
time. In their letter no: DL.BC.111/20.16.001/2001-02 dated June
4, 2002; RBI apprised banks, FIs and state financial corporations
of the formation of CIBIL and directed them to send, to CIBIL as
well as to RBI, data on:
- Suit-filed accounts of Rs. 1 Crore and above, and
- Suit-filed accounts (wilful defaulters) of Rs. 25 Lacs and
above
Consequently, banks and FIs submitted the list of suit-filed accounts
of Rs. 1 Crore and above, as on March 31, 2002 and quarterly updates
thereof till December 2002, to CIBIL as well as RBI. They also submitted
the list of suit-filed accounts (wilful defaulters) of Rs. 25 Lacs
and above as at the end of March, June, September and December 2002.
Thereafter, from March 31, 2003 onwards, this data is being submitted
to CIBIL alone.
At present, CIBIL is maintaining a database on suit-filed accounts
of Rs. 1 Crore and above and suit-filed accounts (wilful defaulters)
of Rs. 25 Lacs and above. This information is based on an application
developed to enable the users to access data through a parameterised
search process across banks and companies at various geographical
locations. Suit-filed accounts of lower value are being covered in
a phased manner.
Gist
of RBI Schemes of Defaulter Lists
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