Alerts & Updates 6th Aug 2024

RBI Master Directions on Wilful Defaulters: A Comprehensive Guide

Authors

Mukesh ChandSenior Counsel | Mumbai

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On July 30, 2024, RBI issued revised guidelines on the treatment of wilful defaulters with the introduction of the Master Directions on Wilful Defaulters and Large Defaulters (effective from October 28, 2024) (Master Circular/ Master Directions 2024). Earlier these directions were consolidated whereby all the earlier instructions issued by the RBO on the above matters up to June 30, 2015 were consolidated. The 2015 Master Directions now stand replaced by Master Directions 2024.

This update provides a detailed overview of these guidelines, their background, evolution, key judicial interpretations, and practical steps for institutions, banks, borrowers, and guarantors.

Read the detailed update here

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