In a directive issued to all banks and financial institutions, the central bank categorically barred the lending agencies from valuating under and over the prices fixed by the independent valuator. [break]
The latest measure taken is in response to a number of complaints lodged at Grievance Hearing Committee formed by the government to deal with the deep sense of injustices of lending agencies to borrowers.
Some of the borrowers have complained to the committee that lending agencies forcefully started process of auctioning off their collaterals like land and house despite their attempts to renegotiate for the purpose of rescheduling and restructuring loans.
The same directive has also made it mandatory for the lending agencies to blacklist the borrowers having loan liability of more than Rs 2.5 million before incorporating loan collaterals as non-banking assets.
Lending agencies are also required to sell the collaterals as soon as board of directors of the lending agencies decides along with the endorsement of central bank if they book such collaterals as bank´s assets.
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