labels: rbi, sbi
SBI scheme to coexist with RBIs news
Our Banking Bureau
07 February 2002
Mumbai: The State Bank of Indias (SBI) own one-time settlement scheme (OTS) for recovery of dues will coexist with the Reserve Bank of Indias (RBI) newly-launched one-time settlement scheme (OTS II), according to SBI sources. SBIs OTS was launched in July last year, soon after the closure of the RBIs OTS I in June last year. The SBI scheme will be in force till 31 March 2002.

There have been some relaxations in rules under RBIs OTS II scheme. A non-performing account (NPA) with outstanding principal amount Rs 25,000 (without interest) as on 31 March 1998 will be eligible for the settlement. Earlier, the cut-off level was up to Rs 5 crore (including interest). Under SBIs OTS, an NPA up to Rs 1 crore (including interest) will be eligible for settlement.

Under RBIs OTS II, the settlement facility will be available to borrowers against whom the legal proceedings are on, subject to the consent of the courts and lok adalats concerned. However, in such cases, the right to pursue the litigation to recover the entire dues from the borrowers and guarantors will still persist.

Further, the banks right to recover through legal means all dues inclusive of interest from such borrowers as will accept the OTS but fail to pay the settled amount will not stand withdrawn, the sources add.


 


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SBI scheme to coexist with RBIs