RBI issues draft rules on banks' handling of seized assets
NewsBytes | May 6, 2026 2:39 PM CST
RBI sets valuation and sale rules
Banks have to include these seized assets as part of a clear recovery plan, and can only use them to settle what's owed.
They must record the asset at whichever value is lower: its fire sale price or what's left of the loan.
Banks get up to seven years to sell off these assets, and they can't sell them back to the original borrower or related parties.
Plus, everything has to be shown clearly in their balance sheets for transparency.
The RBI is asking for public feedback on these draft rules until May 26, 2026.
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