Legal Question in Banking Law in India

sir,

i taken personnel loan and i am paying every month installment but 3 emi due can bank taken legal action against me.


Asked on 10/31/15, 12:32 am

2 Answers from Attorneys
Vivek Mapara Vivek N. Mapara

Sir

As Per RBI Norms, the account of a borrower becomes NPA, in case of the following eventualities

(i) Interest and / or installment of principal remain overdue for a period of more than 90 days in respect of a Term Loan.

(ii) The account remains 'Out of order'v@ for a period of more than 90

days, in respect of an Overdraft / Cash Credit (OD/CC).

(iii) The bill remains overdue for a period of more than 90 days in the case of bills purchased and discounted,

In such event, once the Account becomes NPA, bank can initiate proceedings under SARFAESI Act to issue notice and take voer the possession of secured assets.

Regards

VIvek N Mapara

vnmlaws.com

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Answered on 10/31/15, 2:23 am
Fca Prashant Chavan Expert Edge LLP

31.10.2015

Dear Sir / Madam,

Yes, as a defaulter in payment and settlement of dues, the Bank may initiate legal action against you for recovery of their dues.

Regards,

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Answered on 10/31/15, 3:35 am


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