It has been made mandatory to accept the loan only if the collateral is not sold even after completing the collateral auction process at least 3 times to recover the loan.
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While accepting non-banking assets, the bank itself will be allowed to accept them only after completing the collateral auction process at least three times. The Rastra Bank issued a directive on Monday to make this provision.
Earlier, there was a provision that if the institution auctioned the collateral in the process of recovering the loan, it had to accept the loan itself if the auction was not sold. Now, by amending that provision, it has been made to accept the loan itself only if the collateral was not sold even after completing the collateral auction process for at least 3 times.
The bank has also said that when accepting the loan, the prevailing market value of the collateral or the total amount borrowed up to the day before accepting the collateral will be valued at the lower of the same price.
Similarly, the provision that banks and financial institutions have to maintain a 100 percent loss provision from the date of acceptance on non-banking assets accepted by the bank has been repealed. Along with this, the Rastra Bank has also repealed the provision that the necessary calculation of the loss provision created for such assets is reconciled in the event that non-banking assets are sold.
