Banks told to collect passport data of borrowers in 45 days

New Delhi:  The finance ministry has directed state-owned banks to obtain passport details of all borrowers, who have taken loans in excess of Rs 50 crore, within 45 days with a view to preventing alleged fraudsters like Nirav Modi and Vijay Mallya from fleeing the country, sources said.

In case the borrower does not have a passport, the bank should obtain a certificate in the form of declaration that the person does not have the passport, sources said quoting the ministry’s advisory to banks.

It further said that the loan application form should be suitably modified to incorporate passport details of borrowers. 

Passport details will help banks to take timely action and inform the relevant authorities to prevent fraudsters from fleeing the country, sources said.

In the absence of passport details, banks were hamstrung in taking timely action to prevent defaulters especially the wilful ones from fleeing the country.