Rbi guidelines - repossession of vehicles
Querist :
Anonymous
(Querist) 16 July 2024
This query is : Resolved
My query is regarding intimation to customers after sale of the vehicle. Should we provide any intimation once we repossess the vehicle and sell it to recovery the money. Is there any RBI guidelines which provides timeline to intimate the customer post sale? Please share your thoughts.
T. Kalaiselvan, Advocate
(Expert) 16 July 2024
If the vehicle is seized for default in loan repayment then upon discharge of entire loan amount, it becomes the duty to return the seized vehicle to its owner.
kavksatyanarayana
(Expert) 16 July 2024
There are no such RBI guidelines. The bank will sanction a vehicle loan and if the borrower does not repay the loan amount, the bank will seize the vehicle, sell it, and inform the borrower.
SIVARAMAPRASAD KAPPAGANTU
(Expert) 18 July 2024
I presume the queriest is a Bank Official. In all fairness, having seized the vehicle, at the time of seizure, the Bank should give a receipt for the peaceful seizure of the vehicle along with the key and RC Book, etc giving all details like Date, Time registration no. of the vehicle, etc. When the vehicle is disposed of, preferably the borrower should be asked to be present. If he is not forthcoming, as per Bank's internal guidelines, dispose of the vehicle, adjust the amount to the loan account and intimate the borrower about the fact. If after adjusting the sale proceeds, loan liability still persists, issue notice to the borrower to clear the same. In case, the sale proceeds exceed the liability, the excess amount may be credited to the operative account ie. SB or Current Account of the borrower with duely intimating the details.
