The State registrar has already granted approval to implement the OTS.
The Goa State Co-operative Bank is the apex financing agency in the cooperative sector in Goa, Daman and Diu, with 58 branches. The bank, whose loan liabilities are around Rs 300 crore, has decided to waive off 100 percent loan interest, but no relief would be granted on the principal amount.
Speaking to Herald, Goa State Co-Operative Bank Chairman Ulhas Phaldesai confirmed receipt of the letter from RBI, which gives the go ahead for the OTS scheme implementation. “Being a multi-level bank, we need permission from the Central Registrar, Government of India. We have written to them and are confident of their positive reply,” he said.
The Co-operative bank had initially refused to accept the OTS scheme stating that the bank has no powers for compromise settlement as per RBI guidelines. It had urged the government to absorb the entire loan liability of the mining dependent, lying with them, through government financial institutions.
“Even after implementing the OTS scheme, we can only offer hundred percent waiver on interest amount. We cannot give any other benefit as far as principal amount is concerned,” Phaldesai said adding ‘relaxation in principal amount is not possible as the bank area operation is very limited, that is within just one State’.
All the nationalized banks in the State have already agreed to implement the OTS scheme. The banks have proposed 40 percent waiver on principal loan amount for truck owners while 30 percent waiver to barge owners along with waiver off 100 percent loan interest.
