The procedure for declaring borrowers as "wilful defaulters" has been streamlined so as to afford full opportunity to the corporates to present their viewpoint before so classifying them.
One manifestation was the impetus to spending on houses, cars, and other consumer durables from buyers’ efforts to beat future price increases. Countering this inflation required a major monetary tightening, which moved both nominal and real interest rates up sharply and led to substantial contractions in housing and other interest-sensitive sectors in the early 1980s.