Finance Ministry Tigthens rules to prevent Bank scams

Mumbai Mar 7: Currently the irregularities and NPAs in the Banking system are being discussed by the public after the PNB scam has broken out. However, the finance ministry has tightened the rules to ensure that such scams don't occur in future.

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 to prevent them from fleeing the country.

The guidelines added that "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."

Officials said that "collections of passport details would help the banks to inform the agencies so that fraudsters can be prevented from default in case of bank defaults".

Experts said that these rules would help banks to scams little bit .