RBI Mandates Disclosure of Borrowers for Increased Transparency

• 26 Sep 2023

Recently, the Reserve Bank of India (RBI) has instructed regulated entities, including commercial banks and Non-Banking Finance Companies (NBFCs), to publicly display information about borrowers whose secured assets have been seized under the SARFAESI Act, 2002, following a prescribed format.

Key Points

• Enhancing Transparency: The RBI has taken steps to improve transparency in the lending sector by requiring regulated entities (REs) to share specific borrower information.
• Display on Websites: REs are mandated to upload this information on their websites, adhering to the prescribed format.
• Timely Disclosure: The first list of borrowers in this category should be accessible on the websites of REs within six months from the date of the circular's issuance.
• Regular Updates: REs must consistently update this list on a monthly basis to reflect the latest developments and changes.
• Compliance with RBI Directive: The circular issued by the RBI serves as a directive to REs, ensuring they follow these disclosure requirements to promote transparency and accountability in the lending industry.