Banking · Wilful Defaulters

Consider the following statements regarding wilful defaults in banking: Statement 1: The Wilful Defaulter classification is a rigorous process where a borrower is identified as having the capacity to honor the obligation but intentionally chooses not to pay, or siphons off the funds for purposes other than those for which the loan was granted. Statement 2: Once a borrower is classified as a wilful defaulter by a committee headed by an Executive Director, they are barred from accessing any further institutional finance for a period of five years from the date their name is removed from the list. Statement 3: Retail banks are permitted to initiate criminal proceedings against wilful defaulters under relevant sections of the law, in addition to civil recovery measures through DRT or SARFAESI. Identify the correct assessment of the statements above.