RBI bans banks from selling seized loan assets back to defaulters
The Reserve Bank of India has rolled out a fresh set of guidelines for banks and non-banking financial companies regarding the acquisition and disposal of non-financial assets tied to stressed loans. Starting October 1, 2026, financial institutions will be prohibited from selling these assets back to the original defaulting borrowers or any entities linked to them. These regulations specifically cover assets obtained through debt settlement processes involving loans that have been classified as non-performing.
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