Goa asks banks to be lenient with barge owners on OTS payment

The Goa government has asked bankers to be lenient towards the barge owners who are not able to pay upfront amount to avail one time settlement (OTS) launched for them, due to continuing slowdown of the mining industry.
"Banks should be lenient to barge (ships carrying iron ore) owners who are part of the OTS scheme by not insisting for 30 per cent upfront payment but accept whatever is paid," Minakshi Gad, Joint Secretary (Finance), Government of Goa told bankers this week.
Gad was addressing a state-level Banking Committee meeting which was attended by Goa Chief Secretary R K Srivastava, representatives of the Reserve Bank of India and other banks, including State Bank of India.

Goa Chamber of Commerce and Industry was also represented for the meeting that discussed about the banking situation in the state.
After the ban on the mining industry in 2012, the Goa government had asked banks to provide OTS for barge owners.
The borrowing barge owners will have to pay 30 per cent upfront to the banks, while government will subsidise 35 per cent of the loan amount.

Government's OTS for mining affected people have been extended till March 31, 2016.
"The bankers expressed their concern towards the poor response of the borrowers. The matter was discussed in detail and government has asked banks to submit to SLBC, a statement regarding individual loan accounts at the start of the mining ban (September, 2012) with the current status by February 21," a senior official, who attended the SLBC, told PTI.

Chief Secretary Srivastava stressed that banks should target achieving qualitative performance for the benefit of the poor and marginalised farmers.
He also briefed about the achievement of the state with regard to Aadhar card and Krishi card and exhorted the need of 100 per cent achievement in issuance of Kisan Credit card by the banks.