In a move that will put intense pressure on businessmen whose companies default in future, the Reserve Bank of India (RBI) tightened `wilful defaulter' norms and said that failure of a company to repay loans could result in other group units and the management also being termed wilful defaulters.
This cross-default condition would apply if the delinquent borrower has raised funds on the strength of the balance sheet of other group companies. Banks have also been told to recover from personal guarantees provided by promoters even without exhausting other avenues.
This cross-default condition would apply if the delinquent borrower has raised funds on the strength of the balance sheet of other group companies. Banks have also been told to recover from personal guarantees provided by promoters even without exhausting other avenues.
No comments:
Post a Comment