Legal Question in Banking Law in India

27.01.2013

Dear Sir / Madam,

(Anand Bagh / Champapet / Karmanghat / Saidabad / Santosh Nagar - Hyderabad)

Guidelines to banks under the SARFAESI Act, 2000 is simple -

1. Any credit / loan outstanding for non payment of EMI's / interest for a continuous period of 6 months at a stretch to be actioned under the Act;

2. A month's notice thereafter to the loanee to pay up and settle outstanding; and failure thereof entitles the bank to commence disposal of assets pledged as security with the bank.

Regards,

FCA Prashant Chavan

Mumbai

(You can mail me for any further on-line advice at [email protected])

Debtors account is required to classified as NPA, as per teh guidelines of RBI.

Debtor is required to be issued notice of 30 days as provided in SERFEASI Act and thereafter all the process of advertisement, valuation etc is required to be followed by the Secured Creditor.