Parliament Question: Action against willful defaulters

GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF FINANCIAL SERVICES RAJYA SABHA UNSTARRED QUESTION NO-386 ANSWERED ON TUESDAY, FEBRUARY 3, 2026/ 14 MAGHA, 1947 (SAKA) ACTION AGAINST WILLFUL DEFAULTERS 386. SHRI SAKET GOKHALE: Will the Minister of FINANCE be pleased to state:- (a) the Public Sector Bank-wise count and amount of willful defaulters identified since 2020-21 and the amount recovered; (b) the number of cases where passports were impounded/LOCs issued/foreign travel restricted and time taken from classification to such action; and (c) the list of top 50 willful defaulters (amount-wise) where recovery is below 10 per cent, with reasons for delay? ANSWER THE MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI PANKAJ CHAUDHARY) (a) to (c): As per inputs received from Public Sector Banks (PSBs), year-wise and bank-wise details of wilful defaulters of Rs. 25 lakh and above during the last five financial year (FYs) and current FY as on 31.12.2025, are at Annex. PSBs have apprised that LOCs were issued against 1,464 wilful defaulters. Also, once a Look Out Circular (LOCs) is issued against the wilful defaulter, foreign travel is restricted by immigration authorities, as and when the person approaches for immigration clearance. Ministry of External Affairs has informed that the total number of passports impounded during the period from 1.4.2020 to 29.1.2026 was 52,592. Further, passports are impounded in terms of section 10 of the Passports Act, 1967. Reserve Bank of India, vide Master Directions on Treatment of Wilful Defaulters and Large Defaulters, has advised lenders to submit the list of wilful defaulters to all Credit Information Companies (CICs) on a monthly basis, and CICs are required to display the same on their respective websites. The details of the same are available on and can be accessed at the following URL of CICs, registered with and regulated by RBI: (i) suit.cibil.com, (ii) suit.experian.in, (iii) equifax.co.in, and (iv) Crifhighmark.com Further, recovery of loans from a wilful defaulter is an ongoing process, and according to the inputs received from banks, recovery in such loans are delayed owing to various reasons. These include, inter-alia, low recoveries caused by asset deterioration and obsolescence, legal encumbrances such as enforcement attachments and ownership disputes, ongoing investigations in loans declared as fraud, modest realisations from resolution through corporate insolvency resolution process, low realisation through liquidation subsequent to failed resolution efforts, and risks in implementation of resolution plans where defaults by successful resolution applicants resulting in litigation and repeat insolvency proceedings. *****Annex Rajya Sabha Unstarred question no. 386, regarding Action against wilful defaulters Details of wilful defaulters as reported by Public Sector Banks (Amounts in crore Rs.) As on 31.3.2021 As on 31.3.2022 As on 31.3.2023 As on 31.3.2024 As on 31.3.2025 As on 31.12.2025 Total Wilful Total Wilful Total Wilful Total Wilful Total Wilful Total Wilful S. Defaulters Total Defaulters Total Defaulters Total Defaulters Total Defaulters Total Defaulters Total Bank Amount Amount Amount Amount N. Amount Amount Recovered Recovered Recovered Recovered Recovered Recovered till till till till till 31.3.2024 till 31.3.2025 31.3.2021 31.3.2022 31.3.2023 31.12.2025 re tn re tn re tn re tn re tn re tn b u b u b u b u b u b u m o m o m o m o m o m o u m u m u m u m u m u m N A N A N A N A N A N A Bank of 1 1,837 20,425 2,533 2,228 24,972 3,582 2,852 26,845 5,096 2,302 23,546 6,334 2,254 22,254 7,626 2,121 22,094 7,997 Baroda 2 Bank of India 359 14,133 1,776 332 15,547 1,993 348 17,162 2,602 366 17,223 3,986 382 17,059 4,437 381 16,367 5,066 Bank of 3 444 6,228 171 485 6,672 329 640 8,090 546 791 6,927 826 975 6,489 1,077 993 6,475 1,413 Maharashtra 4 Canara Bank 971 11,272 1,321 1,072 14,207 1,533 1,685 15,395 1,809 1,757 16,322 2,205 1,825 25,909 2,866 1,866 18,845 3,298 Central Bank 5 789 9,044 537 910 13,490 1,142 1,019 17,045 1,339 1,047 17,048 1,585 1,088 17,042 1,947 1,075 15,954 1,089 of India 6 I ndian Bank 372 6,830 499 454 10,385 500 549 11,192 612 579 10,858 1,074 596 10,473 1,757 668 10,687 2,204 Indian 7 Overseas 589 7,907 1,369 698 13,095 1,631 790 14,778 1,975 852 17,015 2,614 857 17,186 3,017 879 17,292 3,621 Bank Punjab & 8 46 690 291 53 828 295 90 923 300 98 1,084 306 103 1,145 309 108 1,205 316 Sind Bank Punjab 9 National 1,861 37,509 3,877 1,991 39,634 5,572 2,314 44,653 6,117 2,370 46,667 7,079 2,306 40,871 8,342 2,436 43,229 8,627 Bank 10 UCO Bank 472 8,756 311 567 10,276 429 679 11,589 516 727 11,791 611 734 11,851 1,362 742 12,389 1,430 Union Bank 11 1,586 26,579 2,669 1,638 31,467 4,441 1,905 37,640 5,212 2,050 40,264 5,880 2,079 40,988 7,433 2,196 41,145 7,983 of India State Bank of 12 1,806 67,634 5,003 1,837 71,098 6,479 1,923 79,341 7,536 2,054 81,680 8,088 2,057 81,635 8,194 2,172 81,123 8,210 India Source: Banks *****