Passport Details Mandatory For Loans Rs 50 crore

If you are planning to take loan of Rs 50 crore or above, you have to submit your passport detailsPassport details are mandatory to curb fraud and money laundering. A prompt action can be ensued if passport details are available.

With no passport details, banks are unable to catch hold of the defaulters. In case, if the defaulter flees away, then banks are not able to take timely and swift action against them.

Why Passport Made Mandatory

  • If passport details are available with the bank, the banks can easily take timely action. Moreover, they can play a pivotal role in catching hold of the defaulters. Alternatively, they can inform different authorities who can stop the defaulters from running away.
  • According to Rajeev Kumar, Financial Services Secretary, with the new mandate, the banking would certainly become clean and more responsible. You can get a quick response in case of any fraud if passport details are available. Hence, it is made mandatory to furnish passport details while taking a loan of Rs 50 crore or above.

A Preventive Step

  • The new mandate is introduced as a preventive step. Henceforth, you will have to furnish your passport details if you are a new borrower. Additionally, for the existing ones, the banks will also collect the details of passports of borrowers. They are given a time frame of 45 days within which they have to collect all relevant information.
  • Before the new mandate came into existence, banks were unable to catch hold of defaulters especially the ones that fled. The list of defaulters comprise of big names such as Mehul Choksi, Nirav Modi, Vijay Mallya.
  • The Cabinet approved the Fugitive Economic Offenders Bill last week. The Nirav Modi case has become one of the biggest frauds in India in the recent times. Nirav along with uncle Mehul defrauded the Punjab National Bank of Rs 12700 crore. After committing the fraud, they immediately left India. Presently, they are not cooperating with the Enforcement agencies.
  • The government aims at selling the assets of Modi and recover the dues and losses.
  • The Ministry has directed the banks to probe all NPA accounts worth Rs 50 crore or above to curb the possibilities of fraud. The banks will also monitor loans of Rs 250 crore.
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