New Delhi, May 6 -- The Reserve Bank of India (RBI) on Tuesday issued draft guidelines for acquisition of immovable assets by regulated entities - such as banks NBFCs and other licensed lenders - in exceptional cases as part of loan recovery processes.

Usually, regulated entities (REs) don't take possession of non-financial assets such as houses, land, machinery, etc. in lieu of their regular lending operations. However, there are exceptions - when the assets become non-performing, or when the borrower has stopped making payments and the lenders have resorted to invoking legal remedies.

In such cases, REs can take possession of an immovable asset furnished as collateral security as part of the recovery strategy.

According to RBI's draf...