Banks seek ITR access via NSDL to vet borrower info
Lenders have asked the government for access to income tax returns through National Securities Depository (NSDL) to help validate declarations made during loan applications, people familiar with the development told ET. Banks speak of multiple instances when applicants have declared inflated or fake income details with forged documents. That has led to fraud, or financing disproportionate to actual income.
The move comes as RBI has raised concerns over unsecured loans, and last week increased risk weights on unsecured personal loans, credit cards and lending to NBFCs by 25 percentage points. Banks last month sought direct integration with the Income Tax Department, or through NSDL, for online verification of returns, said another official aware of the representation.