Once an NPA, always an NPA?
s.loganathan
(Querist) 26 April 2010
This query is : Resolved
I enjoyed a cc limit from my bank. My account went bad and I could not service my interest & principal for 107 days. My account is declared as NPA on the 90th day. On the 108th day, I service the interest in full & principal (part). The RBI Guideline on Prudential Norms on Asset Classification says that the account should be made 'standard' once interest is paid and the outstanding is within the sanctioned limit. My bank refuses to revert my account as 'standard', instead chooses to maintain my account as NPA and have kept the monies in a suspense account and have contra-ed towards outstanding. Can the bank do this? What recourse do I have? Does not the RBI Guideline have any bearing at all?
Raj Kumar Makkad
(Expert) 26 April 2010
Your bank has adopted a wrong procedure. File a petition before DRT
Uma parameswaran
(Expert) 28 April 2010
Pecuniary jurisdiction of DRT is above ten lakhs and according to my view the above subject matter shall not come under DRT. Approach Bank's Ombudsman or civil Court.
