PSBs can now check on big borrowers on unified portal
- February 24, 2024
- Posted by: OptimizeIAS Team
- Category: DPN Topics
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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.