Which of the following are the impacts of declaring a person quot Willful Defaulter quot 1 The decla...........

Economic Affairs Types of Banks and Banking

Which of the following are the impacts of declaring a person "Willful Defaulter"?

1.The declaration chokes off most credit channels.

2.A wilful defaulter is not permitted to float any new business for a period of five years from the date of being declared as wilful defaulter.

3.Banks and institutions have been given the right to change the management of wilfully defaulting company.

Select the correct answer using the codes given below:

1 and 2 only

2 and 3 only

1 and 3 only

All of the above

- Declaring a person as a "Willful Defaulter" significantly impacts their financial standing.

- Statement 1: Correct. It indeed chokes off most credit channels, making it difficult to secure loans from banks or financial institutions.

- Statement 2: Correct. A wilful defaulter is not allowed to start a new business for five years from being declared one.

- Statement 3: Correct. Banks and institutions are granted the authority to change the management of the company if it is a willful defaulter.

Therefore, all three statements are accurate, and the correct option is:

- Option 4: All of the above

Submit Error