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NPA a/c.- Legal status & automatic revival?

(Querist) 26 August 2010 This query is : Resolved 
My account was declared NPA and duly served Sarfaesi notification. Later, I repaid the entire amount in full discharge of the loan and recovered the documents of my collateral security. No other communication has transpired therein, nor have the bank sent any communication (or statements). Its been almost 3 years.
1. What is the legal status of my account?
2. Would my account have been automatically reverted to an operable account, even though I had not written to them asking to 'unfreeze' my account?
3.Or would the account have been reclassified as 'Dormant a/c' since almost 3years and no transaction or correspondence?
4. Or would the account have been closed, since I had written then asking for amount outstanding so that I can close the account?
s.subramanian (Expert) 26 August 2010
The account would have been automatically closed with the discharge of the loan dues.
Devajyoti Barman (Expert) 26 August 2010
s.loganathan (Querist) 27 August 2010
Gentlemen! That is exactly what I thought, but the Bank say that the account is not closed, and now a forged cheque has been presented and returned. I have lodged a complaint with the police against the Bank and the perpetrator. I have also initiated a criminal case upon them. Is there any rule or citation to show that the account as closed.
Satyendra Kumar Pandey (Expert) 27 August 2010
Sir your account is in dormant position and be in this position till you are not intimating to bank to close the account.

after paying the dues at that time you must state to bank to close the account.

One more thing you are not disclose the nature of account,
If it be SB Account then it will be in dormant and if current then the charges are lying on it and due on you.

s.loganathan (Querist) 27 August 2010
Thank you Mr. Satyendra! You have just ignited some questions within me. My account is a savings account. I was given a 'Ready-Money' term loan that was served with Sarfaesi. When an a/c becomes NPA, it is frozen. But once recovery action under Sarfaesi is initiated, is the a/c assumed to be closed(perhaps thats why no interest is charged on the a/c as it is no longer maintained as an a/c operative with the Bank. If it is not operative then it must be dead, meaning 'closed'. Just to ponder, if Sarfaesi is issued, it enters the domain of DRT, and DRT will recover the debt for the Bank, and after that, will the Bank "automatically revive the a/c of the defendant(customer)". Somehow, the thought doesn't find much flavor. Therefore, can a Sarfaesi invoked a/c become regular without the defendant applying to revive the account? Certainly a thought to ponder.
Parthasarathi Loganathan (Expert) 29 August 2010
Banks normally give notice of dormant and insist for customer's action to either make it operative or get it closed to surrender the unused cheque leaves. This is supported by guidelines issued by the Regulatory authorities.

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