Uttarakhand launches one-time settlement scheme for co-operative banks' NPA recovery

In a bid to recover stressed loans, the Uttarakhand government Monday launched a one-time settlement scheme for those who have taken a loan of up to Rs 60 lakh from co-operative banks.

The scheme has been launchedto recover co-operative banks' non-performing assets (NPAs) worth Rs 391.50 crore which have piled up over the last 25 years, Co-operative Minister Dhan Singh Rawat told reporters here.

The 100 day scheme will last till October 7, he said.

NPA account holders who have taken a loan of up to Rs 60 lakh will be offered concessions under the scheme, he said.

The account holders who have died and already repaid the principal loan amount will get total interest waiver under the scheme, Rawat said.

Common category account holderswho have alreadypaid interest equal to the principal loan amount will be required to repay only the principal.

Account holders falling in the category of suspect accounts in the banking parlance will get 30 per cent concession in repayment of interest on principal, he said.

Loan repayments worth Rs 21 crore were collected in a one month long drive, he said, addingthat 18,465 accounts in co-operative banks have been declared NPAs.