By : M.S.Yatnatti Editor and Video Journalist Bengaluru : http://sahakara.kar.gov.in/faqUrban.html has allowed urban co-operative banks for One time settlement at its website which is introduced as per RBI circular in order to reduce the quantum of Non Productive Assets, (NPA) concession is given in rate of interest of defaulted loans if the loans are settled in one installment. This benefit is sanctioned to the Non-Agricultural Credit Co-operative Societies also. Based on the cost of funds of the institution the proposals are verified and the permission is given to the Urban Banks and Non-Agricultural Credit Co-operative Societies. but to this effect a clear policy need to be announced by Karnataka co-operation department or a circular need to be issued by UBC as that of The Kerala Cooperative Department which has announced a one-time settlement scheme in its effort to clear the loan dues and NPAs of the cooperative banks in the state.The Kerala Cooperative Department has announced a one-time settlement scheme in its effort to clear the loan dues and NPAs of the cooperative banks in the state. In the aftermath of demonetization, there had been a sharp decline in the repayment of loan dues in cooperative banks. It had resulted in the banks incurring heavy losses. In view of the situation, the Cooperative Department is conducting a one-time settlement scheme under the title 'Navakeraleeyam arrear clearance scheme.' It will be in force up to March 31.Cooperative Registrar S Lalithambika said adalats would be held in all banks and societies which come under the purview of the Registrar. "All cooperative societies and banks under the Cooperative Registrar will be covered under the scheme, which offers the maximum interest incentives to attract borrowers. The loans which had incurred dues till December 31, 2016 will be considered,” she said. The Department will take note of the current financial status of the borrowers in granting maximum interest incentives.The banks' board of directors should talks with the borrowers to take note of their financial status, repaying capacity etc. and arrive at an understanding and give them the opportunity for repayment.Under the scheme, only simple interest will be charged on the remaining amount. Priority will be given to the loans which had been found to be 100 per cent unsecured. In all the cases, penal interest will be waived. In a bid to minimize litigations, reduce burden of defaulters and mop-up overdues OTS is offered.
As per RBI guide lines The Board of Directors and the Chief Executive Officer should personally supervise the compromise settlement of chronic NPAs on case to case basis, and should evolve policy guidelines regarding one time settlement of NPAs not covered under this guidelines as part of their loan recovery policy. Compromise settlement of such cases should be done only with the prior approval of the Registrar of Co-operative Societies. Any deviation from the above settlement guidelines for any borrower should be made only by the Registrar of Co-operative Societies.Request to made stop the auction notice and provide One Time Settlement opportunity under the RBI scheme toSmtM Rukmani D/O Munivenkatappa R/a No 149,4th cross 2nd Main Road Vinayaka Nagar Bangalore-56oo70. The RBI scheme is applicable to all Banks and the Banks are bound to follow the scheme guidelines issued by RBI from time to time in respect of term loan of Smt M Rukmani D/O Munivenkatappa and others Account number 50/509/000178 sanctioned on 27-08-2008.In the mean while it isrequested to bank to stop the auction notice and keep in abeyance all court proceedings as it is reported that your borrower went into business problems and her cash flow was not in good condition and shewas not able to pay your out standings in time . As she is entitled for OTS under the modified guidelines of the RBI and she can pay 25% within three months and balance 75 % within one year.