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    Strategies For Recovery

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    virendrahari
    This document discusses strategies for loan recovery and dealing with difficult borrowers according to RBI directives. It outlines that recovery agents should treat borrowers with dignity, respect, courtesy and fairness. Assets become non-performing if overdue for over 90 days. Debtors are classified as standard, sub-standard or doubtful. Willful defaulters often avoid or cancel meetings with recovery agents and make false promises. The SARFAESI Act allows banks to take possession of defaulting borrowers' assets charged to the bank without legal process. Lok Adalats, which settle disputes, are headed by retired judges and their awards cannot be appealed.

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    Strategies For Recovery

    Uploaded by

    virendrahari
    134 views2 pages
    This document discusses strategies for loan recovery and dealing with difficult borrowers according to RBI directives. It outlines that recovery agents should treat borrowers with dignity, respect, courtesy and fairness. Assets become non-performing if overdue for over 90 days. Debtors are classified as standard, sub-standard or doubtful. Willful defaulters often avoid or cancel meetings with recovery agents and make false promises. The SARFAESI Act allows banks to take possession of defaulting borrowers' assets charged to the bank without legal process. Lok Adalats, which settle disputes, are headed by retired judges and their awards cannot be appealed.

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    Strategies for Recovery

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    This document discusses strategies for loan recovery and dealing with difficult borrowers according to RBI directives. It outlines that recovery agents should treat borrowers with dignity, respect, courtesy and fairness. Assets become non-performing if overdue for over 90 days. Debtors are classified as standard, sub-standard or doubtful. Willful defaulters often avoid or cancel meetings with recovery agents and make false promises. The SARFAESI Act allows banks to take possession of defaulting borrowers' assets charged to the bank without legal process. Lok Adalats, which settle disputes, are headed by retired judges and their awards cannot be appealed.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    134 views2 pages

    Strategies For Recovery

    Uploaded by

    virendrahari
    This document discusses strategies for loan recovery and dealing with difficult borrowers according to RBI directives. It outlines that recovery agents should treat borrowers with dignity, respect, courtesy and fairness. Assets become non-performing if overdue for over 90 days. Debtors are classified as standard, sub-standard or doubtful. Willful defaulters often avoid or cancel meetings with recovery agents and make false promises. The SARFAESI Act allows banks to take possession of defaulting borrowers' assets charged to the bank without legal process. Lok Adalats, which settle disputes, are headed by retired judges and their awards cannot be appealed.

    Copyright:

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    Download as DOC, PDF, TXT or read online from Scribd
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    Genesis Academy for Banking and Finance

    Strategies for Loan Recovery & Dealing with Difficult Borrower

    1. The RBI’s directives on recovery emphasizes on


    a) Dignity & Respect to the Borrower
    b) Due Notice being given to the Borrower
    c) Courtesy & Fair treatment being given to the Borrower
    d) All of the above.

    2. A ‘Standard Asset’ of a bank is defined as an asset which is:


    a) Not a Non- Performing Asset (NPA)
    b) A Doubtful Asset
    c) A Loss Asset
    d) None of the above

    3. A loan or advance of a bank is defined as ‘Non Performing Asset’ (NPA) when it


    remains overdue or out of order for a period of:
    a) Less than 90 days
    b) For 90 days
    c) Over 90 days
    d) Over 180 days

    4. Debtors are classified as:


    a) Normal, Difficult and Doubtful
    b) Standard, Sub standard and Doubtful
    c) Prompt , Irregular and Regular
    d) None of the above

    5. Willful defaulters show following responses:


    a) They would avoid responding to the calls of the recovery agents
    b) They would meetings with recovery agent canceling appointments
    c) They will give falls promises
    d) All the above

    6. In case of a ‘willful defaulter’, the recovery agent should:


    a) Collect the documentary evidence to prove the debtor’s negative
    responses to his collection efforts
    b) Preserve the documentary evidence
    c) Collect and send the documentary evidence to the principal
    d) Collect, preserve and send copies of the documentary evidence to the
    principal for further action.

    2. While making a first telephone call to a customer for recovery of dues, a recovery
    agent should:
    a) Only disclose his/ her identity
    b) Disclose his/ her identity and also authority to collect the dues
    c) Discuss with the customer about payment of the dues
    d) Do both (b) and (c) above
    3. Before making a telephone call to a customer, a recovery agent should ensure
    that:
    a) He has been authorized by the bank to collect the due debt from the
    customer
    b) The customer has been notified by the bank of the details (name,
    telephone number, etc) of the recovery agent for collection of the due
    debt
    c) Both the above requirements are followed
    d) None of the above is necessary

    4. Common points to be followed in recovery strategies:


    a) Establishing good rapport with the debtor
    b) Go through KYC and personal profile of the borrower
    c) Go through the copy of loan agreement
    d) All the above

    7. Securitization and Reconstruction of Finance Assets and Enforcement of


    Banking Security Interest (SARFAESI) Act allowed the bank to take possession
    of assets of defaulting borrowers charged to the bank:
    a) With legal process
    b) Without legal process
    c) With permission of Lok Adalat
    d) None

    5. Lok Adalats are


    a) Set up by the State Authority, District Authority, the High Court, the
    Supreme Court etc.
    b) It is headed by the retired judges, social activists, or other members
    of the legal profession.
    c) the award is final and cannot be appealed, not even under Article
    226 because it is a judgment by consent.
    d) All of the above.

    6.

    7.
    8.
    9.
    10.
    11.

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