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?
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
It is one of examples given in the indigo class of audit with respect to 'out of order '
Will check and revert