PSBs can now check on big borrowers on unified portal

PSBs can now check on big borrowers on unified portal

Subject: Economy

Section: Monetary Policy

Context: 

Public sector banks (PSBs) would now be able to check the antecedents of large borrowers and ascertain the existence of any non-performing assets against their name in a single click.

Benefit : a move that is expected to help expedite lending decisions.

Unified portal:

• According to The Indian Banks’ Association – An “Automated Search Portal” was operationalised by the Central Economic Intelligence Bureau (CEIB) in collaboration with the State Bank of India.
• Objective: 
• For antecedent verification of prospective borrowers and NPAs [non performing assets]” to streamline intelligence clearance process for banks.

Features: 

• Under the framework for timely detection, reporting, investigation relating to large value bank frauds, the Department of Financial Services under the Finance Ministry had mandated all PSBs to seek a report from the CEIB before sanctioning loans exceeding ₹50 crore in the case of new borrowers and if the existing borrower’s accounts turned into NPAs.
• The Bureau, in tandem with SBI, has developed a digital platform that would help all public sector banks to obtain mandatory intelligence clearance from the CEIB in a prompt manner.

Importance: To facilitate timely disbursement of funds.