Public sector banks would now be able to check the antecedents of large borrowers and ascertain the existence of any non-performing assets against their name, at the click of a button, a move that is expected to expedite lending decisions.
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An “Automated Search Portal” for antecedent verification of prospective borrowers and NPAs [non performing assets]” to streamline intelligence clearance process for banks was operationalised this week by the Central Economic Intelligence Bureau (CEIB) in collaboration with the State Bank of India, the Indian Banks’ Association said in a statement on Friday.
Under the framework for timely detection, reporting, investigation relating to large value bank frauds, the Department of Financial Services under the Finance Ministry had mandated all PSBs to seek a report from the CEIB before sanctioning loans exceeding ₹50 crore in the case of new borrowers and if the existing borrower’s accounts turned into NPAs.
The Bureau, in tandem with SBI, has developed a digital platform that would help all public sector banks to obtain mandatory intelligence clearance from the CEIB in a prompt manner, which would facilitate timely disbursement of funds, the IBA said.