Penal Intrest Calculations of NPA accounts
Querist :
Anonymous
(Querist) 28 April 2011
This query is : Resolved
Can banks capitalize monthly installment (emi) and monthly interest both amounts for overdue interest( penal interest) calculations for term loan NPA accounts? What are the guidelines of RBI for calculations ?
Guest
(Expert) 29 April 2011
Banks usually adopt this practice and that provision definitely be available in your loan agreement with the bank.
Querist :
Anonymous
(Querist) 29 April 2011
The agreement was made with corp bank homes ltd. Till the account was with them the penal interest was charged on only unpaid interest. the company is merged in corporation bank on 1/07/ 2007, since then they are adding installment and interest amounts to decide overdue amount. The acknowledgement of debit which is taken by them on stamp paper for renewing the account to maintain time limit as per law are given without accepting the debit balance mentioned in it as i was doubtful about their accounting and were not providing calculation sheet , now they have provided it and above conclusion is came after getting the calculation sheet now i want to close the account by paying right amount to them, pl guideme
