Banks Instructed To Disclose Borrower Details Under SARFAESI Act

The Reserve Bank of India (RBI) has directed Regulated Entities (REs), which include commercial banks and Non-Banking Finance Companies (NBFCs), to publicly provide details about borrowers whose secured assets have been taken over by the REs under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act of 2002.

This information must be presented in a specified format, the statement said.

This move is aimed at enhancing transparency, as stated by the RBI. "REs are required to publish this information on their website in the prescribed format. The initial list must be available on the REs' website within six months from the date of this circular, and subsequently updated on a monthly basis," specified the RBI in a circular.