New Delhi : The Finance Ministry has instructed state-owned banks to collect passport details of all borrowers, whose loan amounts exceed Rs. 50 crore.
In cases where the borrower does not have a passport, the bank has to obtain a signed declaration from the person stating he does not have one.
The time allowed for collecting data on passports is 45 days from now.
Further, the bank loan forms have to be modified to include passport details, the Ministry said.
The new move is aimed to prevent defaulters of large loans fleeing the country.
Post PNB scam, the govt is keen on pursuing defaulters to invoke recovery measures given that all public sector banks sit on massive NPAs and need regular capital infusion, the bulk of which are taxpayer’s money.