Company has sent instruction to its bank for payment of installment of repayment of loan to lander institution on last date within normal banking hrs. Due to technical reason borrower bank could not execute RTGS on the same and do the RTGS on very next day. Lander bank get credit after a day from the stipulated date.
Would it be qualify for CARO compliance of default in repayment of loan or it is a simple procedural delay beyond the control of borrower.
Loan Repayment Delay Due to Bank Issue Not a Default Under CARO, Deemed Procedural Delay Beyond Borrower's Control A company faced a delay in loan repayment due to a technical issue with its bank, which resulted in the RTGS being executed a day late. The lender received the credit a day after the stipulated date. The query was whether this situation qualifies as a default under CARO compliance or is merely a procedural delay beyond the borrower's control. The response provided indicated that it should not be considered a default since the delay was not attributable to the borrower. (AI Summary)
TaxTMI 
TaxTMI 
