After my account became NPA, and after the NPA I deposited 50 lakh rupees to my NPA loan account. But bank has debited the same amount from my NPA account and credited to towards interest account. This seems to be very strange. Does the bank has the right to do it??...Has RBI permitted to do this to all banks PAN India. Or is this against the RBI guidelines???....Please elaborate here.
From time immemorial a Banker is having a right of General lien, and banks invariably obtain such a letter (Generally Form. No.1) with loan documents. Get copies of such documents and you can find such a clause in which you have asked the bank for such appropriation. (Generally, a banker freeze the amount, issue notice and can appropriate 15 days after giving such adequate notice)
When an account becomes NPA, as per RBI guidelines, doesn't debit interest to such loan account. However, interest is calculated and kept in a suspense account. When you paid the amount, bank debited the interest and recovered it. I don't find any violation of RBI norms.