India's Reserve Bank rejected banks' request for more time to label wilful defaulters, insisting on a six-month deadline. Delaying the process risks asset devaluation. Banks follow an RBI-established procedure, giving borrowers a chance to present their case before the designation. Becoming a wilful defaulter severely impacts borrowers' creditworthiness and business operations. RBI's June 2024 circular details the process, including public disclosure of defaulters' photos.
