Himachal Pradesh CM Directs One-Time Settlement Policy for State Cooperative Bank

Shimla, Jan 11 (PTI) Himachal Pradesh Chief Minister Sukhvinder Singh Sukhu on Thursday directed the State Cooperative Bank to formulate a One-Time Settlement (OTS) policy to facilitate its customers.

In a meeting with the bank's Chairman Devender Shyam and Managing Director Shravan Manta, the Chief Minister instructed the Bank to work together with the National Bank for Agriculture and Rural Development (NABARD) and the Reserve Bank of India for developing a comprehensive OTS policy.

He said that this initiative was aimed to provide substantial succor to thousands of farmers, horticulturists and other borrowers associated with the Bank, a statement said.

The Chief Minister said that the OTS policy would offer an opportunity to the borrowers of the Bank to settle their outstanding dues at a discounted rate, thereby avoiding legal actions and improving their credit score after successful settlement.

The Bank would also be benefitted as it would improve overall financial health of the bank by facilitating in recovering non-performing assets and reducing long pending debts, he added.

Sukhu said that similar instructions would be issued to the Kangra Central Cooperative Bank and the Jogindra Central Cooperative Bank to develop and implement a OTS policy in the interest of their consumers.