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Passport details mandatory for loans above Rs. 50 crores: Government

In order to ensure swift action against frauds, government has made passport details of borrowers mandatory for taking loans of Rs 50 crore and more. This is to prevent fraudsters from leaving the country.

The availability of passport details will make it easy to take timely action and inform the authorities. Financial Services Secretary Rajiv Kumar said in a tweet, “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.”

He added that this step will prevent economic offenders from flying outside India. Banks have been asked to collect passport details for all existing loans of over Rs 50 crore within 45 days.

Many big and willful defaulters like Nirav Modi, Mehul Choksi, Vijay Mallya and Jatin Mehta have fled the country as there were no passport regulations then.

In line to curb these losses, the Cabinet had last week approved the Fugitive Economic Offenders Bill. The proposed law aims to seize and sell assets of escapees to recover dues. It is also applicable to persons with an outstanding of Rs 100 crore and is escaping the country.

The Finance Ministry had directed public sector banks (PSBs) to probe all NPA accounts of over Rs 50 crore for fraud and report to CBI.