New Delhi, July 19 (KNN) The banks are in big problem due to non-performing assets (NPA) crises of billions of rupees in India and due to such defaulters industries are also in trouble, Badish Jindal, National President of All Industries & Trade Forum (AITF) said this in a letter to Prime Minister Narendra Modi.

He wrote and suggested that the "Credit Information Bureau Limited (CIBIL) can check the financial status of any individual or company. The banks have the access to get the CIBIL record of any company or individual. But such data is unavailable for public. Due which the sellers are unable to know about the financial status of their buyers, which results in defaulting of payments in millions of cases."

He said that even banks hide the NPAs and sickness information of the customers, so in the absence of such information, the trade and industry are unable to get the true information of financial status of their buyers.

In the absence of information such defaulters also play foul with taxation, EPFO, ESIC and other departments, he added.

Quoting an AITF data, he wrote it is found that 50% of such NPA units are deliberate defaulters and beside banks they did the equal fraud with their suppliers and banks, by avoiding taxes, and other labour liabilities.

He suggested that the CIBIL score of all individuals and companies be made public, along with the CIBIL, the bank sickness score and NPA data should also be made available to public.

In Limited and Private Limited companies the CIBIL of the Directors should be linked to the company so that they can stop from committing frauds by creating new companies, he said.

He asserted that the list of units having low CIBIL should be put mandatorily on any public domain. This will have multiple benefits as every individual seller will know about their buyers credit score. This will improve the financial health of banks and financial institutions.

Jindal further requested that the Delayed Payment Act should also be linked to CIBIL for its strict implementation.

The industry will have more confidence in doing business in India. This will be considered as social status and everyone will avoid taking unwanted risks of defamation, he added.