RBI is setting up guidelines telling banks not to call someone a defaulter, if the person has paid the negotiated amount to settle the account. Currently, despite paying the negotiated amount, the card holder is considered as a defaulter as per the bank’s records. Due to this his/her name occurs in the list of the defaulters drawn up by Credit Information Bureau of India Ltd (CIBIL), which uses the data provided by the banks.
Consequently, many loans are not available to the blacklisted person. This leaves the person with no choice, who is then forced to pay the new bill which includes the unpaid amount from the previous settlement along with fines and interest.
An RBI spokesperson said the apex bank is aware of the problem and will soon release a suitable resolution. CIBIL MD Arun Thukral said that RBI has conducted a number of meetings on the subject with banks and CIBIL and said currently the bank considers the balance amount as “written off”, once the dues are settled by the client.
But in most instances, this doesn’t happen. Banks ask for the remaining amount, which as per the client should not have been charged in the first place.