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RBI draft rules let banks hold certain assets only to recover bad loans
Economy
Published on 5 May 2026
Sale must happen within seven years, no back-to-borrower
The RBI has issued draft norms allowing banks to hold specific non-financial assets only when needed to recover bad loans. Such assets must be sold within seven years, and banks are barred from selling them back to borrowers. The move is intended to improve transparency and strengthen recoveries. The draft rules are open for public comments until May 26.
- Banks may hold certain non-financial assets only for bad-loan recovery
- Assets must be sold within seven years
- Selling them back to borrowers is prohibited
- Draft rules invite public comments until May 26
Read the full story at The Economic Times
This summarization was done by Beige for a story published on 
The Economic Times