‘Verbal assurances means no commitment’, this applies to the way banks deal with borrowers. As a customer, you must have observed it many times, whenever we want to request bank to get something like postponing the installment date, restructuring the installment amount etc.; bank expects it in written format. However, while replying or reverting to the same, in spite of expressing it in written format; they make the verbal commitments, which cannot be considered under communication records for future usage. Lack of written records can land the borrower in trouble.

You should never blindly trust the bankers oral assurances as it cannot be used as a proof to justify your side. In lot of cases, SMEs got into the trap of NPA because of trusting on the verbal commitments of the Bank and following it blindly.

Dr Visswas advices to keep communication in writing & demand replies thereof in writing !!