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What is ment by non banking assets?

Updated: 4/28/2022
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13y ago

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No banking company can directly or indirectly deal in the buying or selling or bartering of goods, except in connection with the realisation of security given to or held by it. A bank can not acquire certain asset but can lend against such assets. this means that sometimes, in case of failure on the part of the loanee to repay the loans, the bank may have to take possessions of such assets. In that case, the assets will be shown in the balance sheet as "non banking assets." these assets must be disposed off in maximum seven years.

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