While RBI guidelines are detailed when it comes to Asset Classification and related issues; the Bank officials or the Banks may have to make a subjective assessment of certain issues. It is understood from the reading of RBI guidelines on Asset-Classification that genuine borrowers facing temporary difficulties may be treated separately and based on reasonable assurance of recovery. Guideline 4.2.4 of RBI guideline deals with the issue of ‘accounts with temporary deficiencies’ and narration of few of the temporary deficiencies in the said guideline appear to be ‘inclusive’ in nature allowing the Bank to make certain subjective assessments on case-to-case basis.

Obviously, no creditor and especially secured creditor want to harass a genuine borrower having a good track-record with the Bank for a considerable time. However, with constant emphasis on the issue of reduction of NPAs, it seems that the Banks are very strict while getting the accounts classified as ‘NPAs’. The most important thing about the issue of recovery by the Bank is that they are allowed to proceed against the borrower for default in any of the facilities availed by him when a borrower avails multiple credit facilities.

Our well experienced staff members can take up your D.R.T. Act related legalities from start to finish in a very professional manner, and make the whole process as comfortable as a breeze for you. Furthermore, if you have any queries pertaining to the process in general or related to your business in particular, our executives can respond to them proficiently. So what are you waiting for? Just give us a call, or fill up our contact form, and our executives will gladly assist you further.

Contact Us