The Ministry of Corporate Affairs provided updates on various financial matters in response to questions in Parliament. Here's a summary of the key points mentioned:
- Fugitive Economic Offender Act: As of August 2, 2023, there are eight fugitive economic offenders who are also wilful defaulters. The Directorate of Enforcement (ED) has reported that proceeds of crime of these fugitive economic offenders amount to Rs 34,118.53 crore. Out of this, assets totalling Rs 15,838.91 crore have been confiscated, and assets amounting to Rs 15,113.02 crore have been resituated to public sector banks.
- Unclaimed Deposits: Unclaimed deposits totalling Rs 48,461.44 crore, related to 16,79,32,112 accounts, have been transferred by banks to the Depositor Education & Awareness Fund as of March 31, 2023.
- Investor Education and Protection Fund (IEPF): The amount lying with the IEPF as of March 31, 2023, is Rs 5,714.51 crore.
- Cooling Period for Wilful Defaulters: A cooling period of 12 months has been introduced for wilful defaulters who execute a compromise settlement. This period prevents them from obtaining a fresh loan during the specified time frame. The cooling period is part of the regulatory framework outlined in the RBI's Master Circular on Wilful Defaulters dated July 1, 2015, and the Master Directions on Fraud dated July 1, 2016.
- Credit Information Reporting: Scheduled Commercial Banks (SCBs) and Urban Cooperative Banks (UCBs) with an asset size of Rs 500 crore or more are required to report specific credit information to the Central Repository of Information on Large Credits (CRILC). This reporting pertains to all borrowers with an aggregate exposure of Rs 5 crore and above.
These updates provide insight into various financial aspects, including actions taken against fugitive economic offenders, management of unclaimed deposits, measures for wilful defaulters, and reporting requirements for credit information.
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