5. Repossession of Property

Indian Bank Association (IBA) has laid down some norms for due collection process which includes guidelines for repossession of property as well. They are:

- The bank will opt for the repossession of the borrower's property only as a last measure. The bank should also give a legal notice to the borrower before it does so.

- After taking custody of the property, the bank must take proper care to ensure safety and security of the asset.

- After selling the property, if bank is left with any excess amount upon selling its dues, then this left over amount must be handed over to the borrower.

- The borrower has each and every right to repossess its asset upon clearing the dues.