the borrowers are required to merely submit a request to the lending institutions for being considered under the Resolution Framework. Thereafter, the lending institutions will take an in-principle decision – as per their Board approved policy – on invoking the Resolution Framework. After such invocation, the specific contours of resolution plan to be implemented may be decided by the lending institutions, in consultation with the borrower.

2) it is necessary to peruse terms of loan given by bank to advice 

3) bank can deduct penal interest and other charges if you have failed to pay loan instalments on time 

4) if additional amount is released to you bank would insist on mortgage as per terms of loan 

1. Disbursal of loan depends on the discretion of the bank and the loan agreement define its terms and conditions.

2. Therefore refer to its terms and conditions and see whether the same violates the RBI guidelines or not.

3. If there is any then you can raise this issue with the Banking Ombudsman.

Dear Sir

The bankers always add interest and penal interest and they are entitle to recover the same. For such claims you can not get any relief from any court.

Once property for loan of 1L mortgaged, bank cannot ask for another mortgage for 20K. That is against the guidelines issued by RBI.  You can write  to RBI and file a complaint in District Consumer Forum against bank.

The penal interest or the charges if any accrued, the bank may take steps to recover the same  and for this they do not have to obtain permission from the borrower or the account holder.

They will intimate the borrower about this  only if there is no funds available to recover the said charges. 

The bank actually should not ask the borrower to furnish fresh collateral for the additional loan amount, but it is to be seen that if the additional loan sanctioned was part of the original loan or it is an additional loan.

If you are aggrieved by the decision of the bank, you may send your complaint to the Banking Ombudsman  and seek relief or discuss with your advocate and initiate legal steps as per law if necessary. 

No its illegal you van send them legal notice through advocate

1. If the value of your mortgaged property is more than the total amount of loans taken by you on two accounts, then the Bank has no reason to ask for any further property to mortgage.

2. Penal interest for what reason? Private Banks deduct penal interest  on defaulting loan amount. However, interest on unpaid  penal interest can not be charged.

Dear sir,

you are required to send a legal notice to the bank and later file a suit against them since they miscommunicated you the scenario, also proper actions were not taken while the process was happening.