I have four doubts.Please clarify.
1. A borrower has availed a loan from the bank which has become NPA.The Outstanding bal is approx 1.5 lakhs.
He has kept nearly Rs.5 lakhs in his SB account. The borrower also complains that he has availed the loan at 13.5% and now it is at 17.25& due to changes in Bank's PLR/BASE RATE. He is not allowing to transfer funds from saving a/c to NPA a/c. How can the bank use Bankers right to set off? What is the procedure to be followed.
2. By law of limitation the documents will expire after 3 years hence revival letter should be obtained from the borrower. In personal loans, my bank has instructed that revival is not necessary for standard accounts.The logic is that the bank will get the coverage for 3 years from the last date of repayment.Whay can't this be applicable to all type of loans?
3.While initiating steps under SARFASI 13(2) notice has to be sent to the borrower and should get it acknowledged. Can the notice be directly published in newspaper without sending regd notice/getting acknowledgement?
4. What are the steps of recovery if no property is available as security?How can the steps be initiated?
THANKING YOU IN ADVANCE.