Criminal Trident Pack: IPC, CrPC and IEA by Sr. Adv. G.S Shukla and Adv. Raghav Arora
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Aliasgar Bhagat   01 July 2022

Bank closed and account under npa

Dear Experts,

Having an CC account in a co-op Bank in Pune against property, The bank was under santions from the RBI in 2010 and eventually closed in 2011, our account turned NPA by 2010.

How are we supposed to pay the dues to the bank, and what will be the ROI after the NPA and closure of bank. Should we pay only principal or a settlement amount, and what shoukd be the interest rate if applicable, should it be the same as before or lesser.

Thank you 

A. Bhagat










 4 Replies

Rama chary Rachakonda (Secunderabad/Highcourt practice watsapp no.9989324294 )     01 July 2022

In case of interest payments in respect of term loans, an account will be classified as NPA if the interest applied at specified rests remains overdue for more than 90 days.

SHIRISH PAWAR, 7738990900 (Advocate)     01 July 2022


Your bank might have merged with another bank or the bank might have been taken over by another bank. You can find out from the local branch. 

After the account is turned NPA bank will recall the whole loan and may ask to repay the whole loan by current interest plus penal interest and other charges. 

Aliasgar Bhagat   02 July 2022

Thank you for your reply,

the bank hasn't merged nor taken over. The bank has a collection officer/arbitrator.

The Bombay High Court has stayed any action against us, but they come to us directly for collection and auction of the property. They are charging full interest even after the closure of the bank and NPA account in 2010.




SHIRISH PAWAR, 7738990900 (Advocate)     02 July 2022

If the Bombay High Court stayed any action against the loan defaulter and still bank persons are trying to recover the outstanding then you have to approach the court and bring to the notice of the court the illegal activities of a bank. The court will pass the necessary order in the case.

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