RBI releases draft rules letting banks and NBFCs acquire properties
Business
The Reserve Bank of India (RBI) just dropped draft rules that would let banks and NBFCs take over properties to recover unpaid loans, but only as a last resort.
This is part of a bigger plan to help lenders deal with stubborn bad loans when nothing else works.
Acquired properties sold within 7 years
If someone's loan goes sour and all other options are exhausted, banks can now acquire their property, but they have to sell it within seven years.
To keep things fair, these properties can't be sold back to the borrower or any related party of the borrower.
RBI is also asking for public feedback on these rules until May 26, so there's still room for tweaks before anything becomes official.