Finance ministry asks public sector banks to conduct independent assessment of project

The finance ministry  has  instructedpublic sector banks to do their own due diligence on  loan  proposals    instead of relying excessively on the appraisals done by lead banks,  a  move which aims  to arrest the rising incidents of defaults. 

These banks have also been told to monitor the end use of funds to prevent any diversion or misuse of loans. At present, small and midsized banks depend on the due diligence done by lead banks. 

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