For taking over any account, Banks must put in
place, a Board approved policy with regard to take over of accounts
from another bank as advised by RBI in its letter Dt.10/05/2012 to
all Scheduled Commercial Banks. The above advisory must be
incorporated in the Credit Policy /Takeover Policy of the bank. A
copy of Board approved policy to be sent to Finance Department for
information & record.
Normally, the loan accounts having credit ratings
above the level approved by the Board should be taken over subject
to the precautions to be taken in the light of CVC's observation.
The concessionary facilities in taken over borrowal
accounts should be extended only in extremely deserving cases with
specific reasons recorded in writing.
In all cases of take over of accounts, it is
necessary to do proper due diligence including visits to the
premises of the customer if needed, before the account is considered
for take over by Bank.
The guidelines of joint lending should be strictly
applied in all cases where the borrower seeks to have additional
exposure from the bank after taking over the account.
No cases should be taken over by a Bank from any
Bank where any of its ED or CMD have worked earlier. In case, any
such account need to be taken over, the proposal is to be put up to
the Board with specific reasons justifying the need for taking over