Wilful Defaulters: A Declining Trend in India's Financial Sector

In March 2024, there were 2,664 unique wilful defaulters in India, a number that has been on the decline. Various government and RBI initiatives have been implemented to curb wilful defaults, improve bank financial health, and deter access to capital markets for these defaulters.

The number of wilful defaulters in India stood at 2,664 as of March 2024, marking a notable decrease from previous years, according to a report presented to the Rajya Sabha. The decline was highlighted by Minister of State for Finance, Pankaj Chaudhary, indicating that the figure dropped from 160 in FY 2021-22 to 42 in FY 2023-24.

Efforts by the government and the Reserve Bank of India have been pivotal in deterring wilful defaults and addressing non-performing assets (NPAs), thereby boosting the overall financial stability and health of banks. These measures include restricting defaulters from accessing capital markets and preventing them from initiating new ventures for a period of five years.

The banking sector's financial robustness has seen considerable improvement due to comprehensive policy interventions. Gross NPAs have decreased significantly since March 2018, with a drop from Rs 10.36 lakh crore to Rs 4.64 lakh crore by September 2024. In contrast, the minister noted an increase in gross NPAs related to gold loans across commercial banks and NBFCs from March to June 2024.

(With inputs from agencies.)