Bankers Sceptical About Npa Settlement Scheme

The one time settlement (OTS) scheme for non-performing assets (NPAs) announced by the Reserve Bank of India would make action against willful defaulters more difficult, banking sources said here today.

According to bankers, "The scheme would provide an escape route to several companies which defaulted on loans availed from one Indian bank, had applied for fresh loans approvals from a different bank and then defaulted on that loan also.