Banks to collect passport details of borrowers with Rs 50 crore or above loans

Banks to collect passport details of borrowers with Rs 50 crore or above loans
Banks will soon start collecting passport details of all borrowers who have taken loans in excess of Rs 50 crore. The decision comes in the wake of a Finance Ministry directive which is aimed at preventing defaulters from leaving the country like how Nirav Modi, Mehul Choksi and Vijay Mallya did.

In case the borrower does not have a passport, the bank should obtain a certificate in the form of declaration that the person does not have the passport, sources said quoting the Finance Ministry’s advisory to banks. It further said the loan application form should be suitably modified to incorporate passport details of borrowers. Passport details will help banks to take timely action and inform the relevant authorities to prevent fraudsters from fleeing the country, sources said.

Source by oneindia…

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