The RBI is soon likely to put in place a ” central fraud registry” that will deal with banks’ shady transactions and bad loans, says PTI.
The registry will work under the RBI and ensure a quick sharing of information about illegal activities in the banking sector. For example , at the time of sanctioning of a loan, banks can make use of the registry by checking the credentials of a borrower.
For good measure, the CBI and the Central Economic Intelligence Bureau (CEIB) have shown interest in sharing their databases with banks which in turn can be fed into this centralised searchable database that can be accessed by banks.
According to RBI data, gross NPAs (non-performing assets) of PSU banks stood at Rs 2,60,531 crore as of December 2014. And the top 30 defaulters are sitting on bad loans amounting to a huge Rs 95,122 crore, which is more than one-third of the entire NPAs of public sector banks.