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 &
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 the