IndigoLearn

Banking

In an account , if the sanctioned limit is 60 lakhs and the actual borrowing is 65 lakhs Then if the actual borrowings outstanding continuously(90 days) remains in excess of sanctioned limit, then it become out of order .Right ? Then, my question is that if the customer pays 5 lakhs during 90 days, will it be out of order?


Swathi Krishna

Swathi Krishna

CA Inter

7K+

02-Jul-20 10:27

20

Answers (6)

Best Answer

K

We have checked the video and also the ICAI Material and other regulatory provisions - The events envisaged in the statement " the Outstanding amount is greater than sanctioned limit...." is possible only if interest is not serviced . Other than that the loan principal cannot exceed the Sanctioned limit. Secondly in your question, if the customer pays interest amount within 90 days and brings out standing value below sanctioned limit / DP, then the account is no longer out of order


Sriram Somayajula

Sriram Somayajula

Admin

03-Jul-20 19:37

Loan amount cannot exceed sanctioned limits - can you please share image or reference that you are referring to in any material from where you got this query?


Sriram Somayajula

Sriram Somayajula

Admin

02-Jul-20 14:23

It is one of examples given in the indigo class of audit with respect to 'out of order '


Swathi Krishna

Swathi Krishna

CA Inter

7K+

02-Jul-20 19:08

K


Swathi Krishna

Swathi Krishna

CA Inter

7K+

02-Jul-20 22:43

Thank you so much


Swathi Krishna

Swathi Krishna

CA Inter

7K+

03-Jul-20 22:04