seized assets

RBI Bars Defaulters and Related Parties from Buying Back Seized Assets Under New Norms

The Reserve Bank of India (RBI) has prohibited defaulting borrowers and their related parties from buying back properties acquired by lenders to settle debt, under new directions effective October 1, 2026. Banks must adopt board-approved policies for asset acquisition, dispose of such assets within seven years via public auction, and follow standardised valuation and accounting rules. The regulations tighten norms for stressed asset resolution and have implications for borrowing costs and trade finance.