Bank laws
anup
(Querist) 05 February 2014
This query is : Resolved
CAN AN IRREGULAR ACCOUNT BE DECLARED NON-PERFORMING ASSETS BY BANK, INSPITE OF DEBT RESTRUCTURING PROPOSAL HAS BEEN SUBMITTED BY THE ACCOUNT HOLDER?
Devajyoti Barman
(Expert) 05 February 2014
The account holder can always place restructuring proposal but the Bank is not bound to accept it.
Yes irregular a/c can always be declared a NPA.
Guest
(Expert) 05 February 2014
Proposal is your right, disposal is their right. So, the later has the overriding effect.
R.K Nanda
(Expert) 05 February 2014
state facts also.
Rajendra K Goyal
(Expert) 05 February 2014
An account is classified as per RBI guidelines and it is not sole decision of the Bank. If the account is irregular it would be classified as NPA till any decision is taken on restructuring of it.
malipeddi jaggarao
(Expert) 07 February 2014
I go with the opinion of expert Shri Rajendra Goyal.
Even for granting restructuring, the account need to be declared as NPA. Then only the Bank can consider restructuring. In regular account what is the need for considering restructuring.
R.V.RAO
(Expert) 09 February 2014
nonpayment of the interest due /principal due (as per RBI norms ) is the trigger point for NPA declaration.
consequent to your A/C being declared as NPA only , the debt restructuring exercise started.the first step being your restruc.application , now wait for bank's response.
but simply because you put in restruc.application does not preclude the bank from declaring your A/C as NPA, as per RBI guidelines.
R.V.RAO
(Expert) 09 February 2014
to declare as NPA,non payment of either the interest due /principal due (as per RBI norms ) is the trigger point.
consequent to your A/C being declared as NPA only , the debt restructuring exercise started.the first step being your restruc.application , now wait for bank's response.
but simply because you put in restruc.application does not preclude the bank from declaring your A/C as NPA, as per RBI guidelines.
T. Kalaiselvan, Advocate
(Expert) 07 February 2014
