Settlement of loan
DR SHAHLA FIRDAUS
(Querist) 12 August 2013
This query is : Resolved
i hv taken the cc loan from SBI in 2oo7. IN 2010 A/C has became NPA but no information has been passed to me by the bank . suddenly demand notice has been issued for RS. 401558/-. possession notice has been also issued but no date mentioned and no published in the news paper within seven days .After that i went to bank and one lac deposit in my cc A/C on date 22-10-2011 BY the order of bank manager. 31st july 2013 auction notice has been published in news paper for RS.470382/- . Auction date 13 September 2013. then iwent bank but no agree for settlement and told me one lac deposited amount and FD amount for RS. 40000/- has become nil. you wil hv to deposit 470382 . HOW TO STAY AUCTION PROCEEDING ? AT THE TIME OF SETTLEMENT HOW TO RECOVER DEPOSITED RS. ONE LAC & RS. 40000/- FD Amount?? AND HOW TO SETTLE THE LOAN? THANKS KINDLY GUIDE ME
M.Sheik Mohammed Ali
(Expert) 12 August 2013
where are you from ?
if you are in interest to pay the due balance immediately send notice and file a case against the bank. and get injunction from the court.
Advocate Sastry
(Expert) 12 August 2013
Incomplete information... Give full details and actual facts... You say that you have taken CC from bank in 2007 and account became NPA in 2010... In CC account the regular operations must be there... You cannot say that Account became NPA without your knowledge and no notice has been given...Banks normally inform the client and put pressure on them when the account is slipping as NPA.. Please discuss with Bank officials to resolve the issue..
Rajendra K Goyal
(Expert) 12 August 2013
CC account become NPA and the RBI circular instructions in this respect is as under:
RBI/2012-13/39 DBOD.No.BP.BC.9 /21.04.048/2012-13 July 2, 2012
2.1 Non performing Assets
2.1.1 An asset, including a leased asset, becomes non performing when it ceases to generate income for the bank.
2.1.2 A non performing asset (NPA) is a loan or an advance where;
ii. the account remains ‘out of order’ as indicated at paragraph 2.2 below, in respect of an Overdraft/Cash Credit (OD/CC),
2.2 ‘Out of Order’ status
An account should be treated as 'out of order' if the outstanding balance remains continuously in excess of the sanctioned limit/drawing power. In cases where the outstanding balance in the principal operating account is less than the sanctioned limit/drawing power, but there are no credits continuously for 90 days as on the date of Balance Sheet or credits are not enough to cover the interest debited during the same period, these accounts should be treated as 'out of order'
Now on your query:
a) It is wrong to say that you did not knew the position of your account. You must have not done the transaction and serviced the interest in the account.
b) Once the account is NPA Bank does not apply interest on it, interest is due but not debited in the account.
c) your deposit of Rs. 1,00,000/- and FD of Rs. 40,000/- may had been adjusted in interest due. Roughly > 50,000/- per year interest is due on amount of Rs. 4,00,000/-
Amount of your deposit and FD was hardly able to satisfy 3 year interest.
d) Bank has issued auction notice for net amount after applying up to date interest and after adjusting all your deposits / liquid securities etc.
e) You may deposit the outstanding and can save your property.
f) Alternately amicably settle with the Bank about your payment programme and pay accordingly.
Raj Kumar Makkad
(Expert) 15 August 2013
No more to add in the light of relevant replies.
