Definition
A borrower classified by a bank as having the ability to repay but deliberately not doing so, or having diverted/siphoned off funds. RBI's Master Circular on Wilful Defaulters prescribes strict consequences: no new credit facilities, criminal proceedings under applicable IPC/BNS provisions, and publication of names. Directors of wilful defaulter companies are debarred from being directors of other companies.
Related Terms
NPAFraudRBICIBIL
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For specific advice on how Wilful Defaulter applies to your debt recovery matter, consult Advocate Subodh Bajpai — LLM, MBA (XLRI Jamshedpur). 25+ years of exclusive banking and debt recovery practice across DRT, SARFAESI, IBC, and NI Act.
Defined by Advocate Subodh Bajpai, Senior Partner, Unified Chambers and Associates