It seems you’ve shared an article discussing the rights of individuals who have taken loans but are unable to repay them due to various circumstances. These individuals have certain rights outlined by the RBI to protect them in such situations. Here’s a summary of the key points:
- Complaints Against Recovery Agents: Borrowers who can’t repay their loans have the right to engage recovery agents to collect the debt. However, these agents cannot cross certain limits and are not allowed to use threats or harassment. Complaints against their behavior can be lodged with the bank, and if necessary, banking ombudsmen can be involved.
- Sending Notices to the Bank: Banks cannot take control of your assets without following due process. When a borrower fails to make loan payments for 90 days, the account is categorized as a non-performing asset (NPA). In such cases, the defaulter needs to be issued a 60-day notice before any further action is taken.
- Right to Challenge Auction Prices: Before selling off assets, the bank must notify the borrower about the estimated value of the assets and the date of the auction. If the borrower believes the value is understated, they can challenge the auction process.
- Access to Surplus Amount: After the loan is repaid through the auction, if there’s an excess amount left, the borrower has the right to claim that surplus from the bank.
- Protection from Recovery Agents: Recovery agents can’t engage in abusive or threatening behavior towards borrowers. They are allowed to visit borrowers between 7 AM and 7 PM. Complaints can be made against them if they violate these rules.
- Bank’s Right to Take Possession: Banks cannot directly take possession of assets. They must issue notices and follow specific timelines before proceeding with any sale of the assets.
- Right to Fair Auction: Borrowers have the right to challenge the auction process if they believe the value of their assets is underestimated. This ensures a fair process and prevents undervaluation of assets.
Remember that these rights are designed to protect borrowers in difficult situations. It’s important for borrowers to be aware of these rights and follow the appropriate procedures to ensure their interests are safeguarded.