The naming and shaming of bad borrowers apply to wilful defaulters of public sector banks, who, according to the Reserve Bank of India Guidelines, are those who do not repay deliberately despite having sufficient funds and a solid net worth. The public sector banks have even started publishing photographs of the borrowers in newspapers.
Citing, among other things, the CLICO and BAICO experiences, they tasked the Committee of Central Bank Governors to prepare a proposal for the creation of a regional architecture for financial stability for final consideration by the Council for Finance and Planning (COFAP). The mandate was to accelerate the construction of a robust regional financial stability framework.