Wilful Defaulter

A borrower will be classified as a wilful defaulter if they default on a loan despite having the capacity to repay.RBI has asked banks to check all bad loans of ₹25 lakh and above for signs of wilful default.Total outstanding wilful default as of 31 March stood at ₹3.6 trillion.

It refers to a borrower who has access to funds to repay his loans but he still chooses not to, and defaults on the repayment of loan. RBI has now released a draft master direction on treatment of wilful defaulters