{
 "name": "Wilful & Large Defaulters / CRILC framework — India's RBI regime",
 "unit": "definitions, thresholds and process",
 "dashboard": "https://bankpulse.ai/dashboards/willful-defaulters-crilc/",
 "source": "RBI Master Direction — Treatment of Wilful Defaulters and Large Defaulters, 2024 (rbi.org.in); CRILC reporting framework",
 "reviewed_by": "Vikram Jain",
 "license": "https://creativecommons.org/licenses/by/4.0/",
 "updated": "2026-06-22T15:46:02+05:30",
 "dateModified": "2026-06-22T15:46:02+05:30",
 "method": "The RBI framework for wilful defaulters and large defaulters and the Central Repository of Information on Large Credits (CRILC) — definitions, the monetary thresholds, SMA early-stress categories, the identification / review-committee process and the consequences — under the Master Direction on Treatment of Wilful Defaulters and Large Defaulters, 2024.",
 "note": "Framework / structural facts; the monetary thresholds are regulatory and may be revised by the RBI; NOT in the Verified-numbers ledger pending reviewer sign-off. CRILC reporting threshold Rs 5 crore aggregate exposure; large defaulter Rs 1 crore outstanding in a doubtful/loss account; wilful defaulter examined where outstanding Rs 25 lakh and above; SMA-0/1/2 stress categories before NPA at 90 days; classification via Identification Committee + right of representation + MD/CEO Review Committee; consequences include no additional credit, a multi-year bar on new ventures, ineligibility for restructuring and reporting to Credit Information Companies.",
 "thresholds": [
  {
   "regime": "CRILC reporting",
   "value_crore": 5.0,
   "detail": "Lenders report every borrower with aggregate exposure (fund + non-fund) of Rs 5 crore and above to the CRILC repository"
  },
  {
   "regime": "Large defaulter",
   "value_crore": 1.0,
   "detail": "A defaulter with an outstanding amount of Rs 1 crore and above whose account is classified doubtful or loss (suit-filed or non-suit-filed)"
  },
  {
   "regime": "Wilful defaulter",
   "value_crore": 0.25,
   "detail": "An account can be classified as wilful default where the outstanding is Rs 25 lakh (Rs 0.25 crore) and above, on evidence of deliberate default"
  }
 ],
 "wilful_default_acts": [
  {
   "act": "Default despite capacity",
   "detail": "The borrower has defaulted on repayment obligations even though it has the capacity to honour them"
  },
  {
   "act": "Diversion of funds",
   "detail": "Funds borrowed for one purpose are used for a different purpose than that for which the finance was availed"
  },
  {
   "act": "Siphoning of funds",
   "detail": "Funds are taken out of the business to the detriment of the entity / lenders, not used for the entity’s purposes"
  },
  {
   "act": "Disposal of secured assets",
   "detail": "The borrower disposes of or removes movable / immovable property given as security without the lender’s knowledge"
  }
 ],
 "sma_categories": [
  {
   "category": "SMA-0",
   "overdue": "up to 30 days",
   "detail": "Principal or interest not overdue beyond 30 days but the account shows early signs of stress"
  },
  {
   "category": "SMA-1",
   "overdue": "31-60 days",
   "detail": "Principal or interest overdue between 31 and 60 days"
  },
  {
   "category": "SMA-2",
   "overdue": "61-90 days",
   "detail": "Principal or interest overdue between 61 and 90 days; beyond 90 days the account becomes a Non-Performing Asset (NPA)"
  }
 ],
 "framework": [
  {
   "element": "Master Direction",
   "what": "Wilful & Large Defaulters, 2024",
   "detail": "RBI’s Master Direction on Treatment of Wilful Defaulters and Large Defaulters, 2024, consolidates and updates the earlier instructions on identifying and dealing with such borrowers"
  },
  {
   "element": "CRILC",
   "what": "Large-credit repository",
   "detail": "The Central Repository of Information on Large Credits, operational since 2014, into which lenders report all borrowers with aggregate exposure of Rs 5 crore and above, including their SMA / default status"
  },
  {
   "element": "Identification Committee",
   "what": "First-stage scrutiny",
   "detail": "An Identification Committee examines the evidence and issues a show-cause / proposal where wilful default is suspected"
  },
  {
   "element": "Right of representation",
   "what": "Borrower heard",
   "detail": "The borrower is given an opportunity to make a written representation before any classification is confirmed — a due-process safeguard"
  },
  {
   "element": "Review Committee",
   "what": "Final confirmation",
   "detail": "A Review Committee (headed by the lender’s MD / CEO) takes the final decision to classify a borrower as a wilful defaulter; classification is to be completed within a prescribed period of the account becoming NPA"
  },
  {
   "element": "Reporting to CICs",
   "what": "System-wide visibility",
   "detail": "Lenders report wilful-defaulter and large-defaulter lists to the Credit Information Companies so the information is visible across the financial system"
  }
 ],
 "consequences": [
  {
   "consequence": "No additional credit",
   "detail": "No additional credit facility is granted by any bank or financial institution; the bar continues for a period after the name is removed from the list"
  },
  {
   "consequence": "Bar on new ventures",
   "detail": "Promoters / directors are barred from floating new ventures for a prescribed number of years from the date of removal of the name from the list"
  },
  {
   "consequence": "No restructuring",
   "detail": "Wilful defaulters are not eligible for restructuring of their existing credit facilities"
  },
  {
   "consequence": "Resolution / recovery action",
   "detail": "Lenders may initiate legal recovery (SARFAESI / DRT), the Insolvency and Bankruptcy Code, a change in management, or criminal proceedings where warranted"
  },
  {
   "consequence": "Public & bureau reporting",
   "detail": "Names are reported to Credit Information Companies and may be published, restricting access to finance across the system"
  }
 ]
}