Glossary

Large defaulter

A borrower with an outstanding of INR 1 crore or more, which the Reserve Bank's defaulter regime makes a large defaulter for reporting purposes.

Stated as at 21 September 2026 · Reviewed 14 October 2026 · All terms

An outstanding of INR 1 crore and above makes a borrower a large defaulter for reporting purposes. The rule sits in the Reserve Bank of India's instrument of 28 November 2025, DOR.FIN.REC.No.85/20-16-003/2025-26, which restates the wilful and large defaulter regime issued as a Master Direction on 30 July 2024. The source given below is the Reserve Bank of India (Commercial Banks, Resolution of Stressed Assets) Directions, 2025, issued on the same date.

The large defaulter threshold sits alongside the INR 25 lakh outstanding that brings an account within the wilful defaulter machinery. The thresholds are stated as at 21 September 2026.

Used in

The SARFAESI clock in 2026: what each stage of enforcement costs while it runsLaw stated as at 21 September 2026
A commercial bank can classify a wilful defaulter only through two committees, a 21 day notice and a 15 day representation, and a compromise lifts the label only when it is paid in fullLaw stated as at 28 October 2026

Sources

CircularReserve Bank of India (Commercial Banks, Resolution of Stressed Assets) Directions, 2025, RBI/DOR/2025-26/165, as updated on 1 October 2026rbi.org.inOn this site: Reserve Bank of India (Commercial Banks, Resolution of Stressed Assets) Directions, 2025

Related terms: Wilful defaulter, Non-performing asset

Cite this termLarge defaulter. Juris Eagle glossary. Stated as at 21 September 2026. https://juriseagle.com/glossary/large-defaulter