RBI which earlier has permitted the use of photographs of only ‘willful’ defaulters in newspaper advertisements directs the publication of photos of all defaulters should be stopped. RBI taking into account the sensitivity involved, directed to prevent the publishing of photos of defaulting borrower in an indiscriminate manner. RBI reiterated that banks are allowed to publish photos of proprietors, partners, directors and guarantors of borrower firms that have been declared as willful defaulters. RBI further directed banks to formulate a policy with the approval of their board of directors which sets out the criteria based on which the decision to publish the photos of a defaulter will be taken.
For more details please refer the attached circular.