Mumbai, July 16: The Reserve Bank on Thursday said a bank which has acquired an immovable asset in an exceptional case as part of a recovery process cannot sell it back to the borrower or related parties. Regulated entities (banks), in normal course, are not expected to come into possession of non-financial assets in lieu of their regular lending operations.However, in exceptional cases, where the exposures become non-performing and legal or contractual remedies have been invoked, regulated entities may, as part of a recovery strategy, acquire ownership of an immovable asset furnished as collateral security. (PTI)
