Himachal Pradesh: One time settlement policy will be made for the consumers of State Cooperative Bank, CM Sukhwinder Singh Sukhu gave instructions

Chief Minister Sukhwinder Singh Sukhu directed Himachal Pradesh State Cooperative Bank to formulate One Time Settlement (OTS) policy for the convenience of its customers.

The Chief Minister, while chairing a meeting with the bank’s Chairman Devendra Shyam and Managing Director Shravan Manta at Oak Over today, directed the officials to develop a comprehensive One Time Settlement Policy in collaboration with NABARD and the Reserve Bank of India. He said that the objective of this initiative is to provide adequate assistance to thousands of farmers, gardeners and other borrowers associated with the bank, which will be launched soon.

Credit score will improve

The One Time Settlement Policy will provide the bank’s loan holders an opportunity to settle their dues at a concessional rate. This will avoid legal action and improve their credit score after successful settlement. Along with this, the bank will also benefit from recovery of non-performing assets, loan recovery and overall financial improvement of the bank.

More than 5 thousand people will benefit

Thakur Sukhwinder Singh Sukhu said that this policy of one time settlement will benefit more than 5 thousand people. He said that similar instructions will be issued to Kangra Central Cooperative Bank and Jogindra Central Cooperative Bank to develop and implement such one time settlement policy in the interest of their customers.

One time settlement policy will be made jointly with NABARD and RBI

The Reserve Bank of India has issued instructions to all the banks in the country to work under the one time settlement policy while dealing with the financial transactions of the consumers. The reason given behind this is that time is wasted in the court and in the end the cases are settled only after creating the basis of mutual consent. In such a situation, the bank management of the state will work with NABARD and RBI to make such a policy so that huge losses to the banks can be prevented.