NEW NORMS SHOULD BE SET FOR TAKING SECURED LOANS
"A MAN IS NOT ALONE WITHOUT A LOAN"
Bureau,Odishabarta
NEW NORMS SHOULD BE SET FOR TAKING SECURED LOANS WITH OTS SCHEME INTRODUCED FOR ALL LOANS HAVING BECOME NPAS AS ON 31.12.2019.
DELHI:Banks and Non-Banking-Finance-Companies (NBFCs) provide secured loans against properties or other assets after keeping sufficient margin-money. But on the account becoming Non-Performing-Asset (NPA), banks and NBFCs can initiate recovery-proceedings to the extent of auctioning the asset. Present system provides banks and NBFCs to initiate recovery-proceedings for balance loan-money after auction of mortgaged assets in case money received from auction does not cover full amount of balance loan. It is noteworthy that banks and NBFCS in most cases receive part of loan-amount before default.
This practice must be changed whereby banks and NBFCs may have to close all recovery-proceedings after acquiring mortgaged assets. System will tend to prevent malpractices whereby valuation of mortgaged assets is deliberately valued high by a collision between concerned ones at lending-institution, valuers and borrowers. Valuers and officers of banks and NBFCs will then be made liable for excessive valuation of mortgaged assets.
Considering general problem faced by trade and industry due to corona-crisis, borrowers are facing practical problems in paying back loans. Reserve Bank of India (RBI) and Department of Financial Services (Banking) should devise a uniform One-Time-Settlement (TS) scheme for all accounts of Banks and NBFCs having become NPAs as on 31.12.2019 on lines of OTS launched by State Bank of India (SBI) in the year 2012. This will be in interest of all concerned wherein even Banks and NBFCs when they will get easy recovery of at least some percentage of loan-amount rather than ultimate writing off complete loan-amount that too after spending huge on recovery-process and court-cases that too without any practical recovery.
Input;Mr.Subash
