THIRUVANANTHAPURAM: The 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 demonetisation, 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.