RBI proposes new rules for banks and NBFCs acquiring immovable assets during loan recovery

RBI proposed new draft rules for banks and NBFCs on acquiring immovable assets during loan recovery from defaulting borrowers. The guidelines aim for controlled, transparent, and time-bound disposal of these assets to maximize recovery value, with a proposed seven-year holding limit. Lenders are prohibited from selling acquired assets back to the borrower or related parties, with public comments on the draft due May 26.