As many banks have pull out of financing the two-wheeler segment, customers as well as dealers have come under scrutiny for loan defaults.

As reported by Business Line, according to two-wheeler companies and banks, one of the reasons for high defaults has been dealers' negligence to ensure registration of vehicles.

In many of the interior regions dealers sell the vehicles to the customers which they don't get registered. This makes it difficult for the banks to retrieve the vehicle even if there are defaults. This is unlike the norm in the metros and other smaller cities where dealers themselves are required to get the vehicles registered.