Legal Question in Banking Law in India

Banking

Pls let me know if there are guidelines based on which banks have to charge interest. My mothers properties have been sold thru the high court OA and the claim from banks show compounded interest. Is there a ceiling on the interest rate that can be charged. Will it be possible to get RBI guidelines and will banks be bound by this especially as the amount for which the property that was sold exceeds claim. What are the norms to be followed for NPA accounts by the banks and where is this available.


Asked on 7/12/07, 9:58 pm

4 Answers from Attorneys
G. M. Gupta gmguptaandassociates

Re: Banking

yes there are guidelines for banks regarding interests but there are certain conditions too. law is too vast to be discussed here so its better to consult in person with a lawyer

For further detailed advice please contact personally. Consultation charges will apply.

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Answered on 7/17/07, 3:40 pm
kavitha balakrishnan kpp associates

Re: Banking

RBI GUIDELINES FOR SETTLEMENT IN NON-PERFORMING ASSETS (NPAs)

log on to:

http://www.centralbankofindia.co.in/home/rbi.htm

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Answered on 7/13/07, 1:26 am
J. Radhakrishnan independent Practice

Re: Banking

Interest rates have been deregulated. However in export credit. agricultural advances, advances to priority sector like poverty alleviation programmes, self employment schemes for rural folk, RBI prescribes the ceiling rate. You can access the RBI.org.gov.in website to access RBI circulars. However in the instant case, the property has been sold through high court O.A., it cannot be reagitated.

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Answered on 7/13/07, 2:47 pm

Re: Banking

Interest are calculated on the basis of guidelines of RBI and the same also depend upon deposits of banks with RBI.Though there is sealing on interest but bank is an exception.

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Answered on 7/12/07, 10:21 pm


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