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The finance ministry has announced today that, the passport details will be made compulsory for taking loans more than Rs.50 crore from state run banks.
This move is to tighten procedures following the detection of Rs.12,636 crore scam at PNB. Rajiv Kumar, secretary, department of financial services on Twitter stated, this will ensure quick response in cases of fraud.
The state owned banks have been given instructions to obtain passport details of all borrowers, who have taken loans in excess of Rs.50 crore, within 45 days, while 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.
Further, the finance ministry has also asked state run banks to examine the non-performing loans of more than Rs.50 crore for any sign of wrongdoing and inform investigating agencies such as CBI, ED if any such activity was detected.
