Team Herald
PANJIM: Amidst mounting non-performing asset (NPA) figures, the State government has asked the co-operative credit societies to offer one time settlement schemes to the borrowers.
The notification issued by Office of Registrar of Co-operative Societies says, “On scrutiny of functioning of the PAC’s/Multi-purpose/Urban Co-operative Credit Societies in the State, it is observed that, due to mounting overdue of loan advanced by these co-operative societies they are constrained to make provision towards principal and interest receivable from the members.”
The notification says this has resulted into mounting of NPA’s of the said societies against which the appropriate provisioning needs to be done in the balance sheet to avoid further erosion of owned funds.
“In view of this in order to speed up recovery and also to give relief to the affected borrowers, it is necessary that all the credit co-operative societies (other than banks) shall devise a one time settlement (OTS) scheme for their borrowers,” it reads.
To facilitate proper drafting of the OTS scheme the government has laid down guidelines which shall be the guiding principles within which each credit co-operatives shall frame their schemes and obtain approval from their respective board and general body.
The society having any government share capital contribution or aid in any other form shall compulsorily obtain prior permission of the assistant registrar concerned before implementation of the OTS scheme.
The notification says OTS scheme shall be applicable to all the primary agricultural credit/multi-purpose/urban co-operative credit societies registered in the State of Goa who are doing the credit and deposit business.
“The scheme, it shall be made applicable to all the members of the society equally without any discrimination except sitting members on the board of directors, ex-directors and their family as defined under the Act.
The cut off date of this scheme for eligibility shall be March 31, 2015 and shall remain in force till September 30, 2020.
“The scheme will not be applicable to loans availed by the sitting directors/ members of the managing committee, ex-directors and their family as defined under the Act and loans obtained by suppressing the facts and mis-representation about the loanee, the purpose of loans, the particulars of mortgage property etc, similarly this scheme will not be made applicable to the loans availed with the intention of cheating the society and also the loans which has been made to be overdue knowingly wilful defaulters and also with intention of duping the society.
The loanee members who has availed the OTS facility shall not be entitled for any type of facilities/exemption in relation to loan repayment for future 6 years from the date of availing this facility, notification says.
