Srinagar, Aug 10 (KNO): The business community has urged the Jammu & Kashmir Bank authorities to “modify” the recently-introduced One Time Settlement Scheme (OTS) and lifting of “riders” on it for those who have collateral security on their NPA turned loan accounts.
Javed Ahmad Tenga, the president of the Kashmir Chamber of Commerce and Industry (KCC&I), told the news agency—Kashmir News Observer (KNO) that it has raised a few concerns with the J&K Bank regarding the recently-introduced OTS, saying that those who have collateral security with the bank but want to settle their outstanding have been made "ineligible" to use the scheme.
“The recently-introduced OTS is not serving the purpose as again all are not able to avail the scheme despite their wish to liquidate their outstanding as a result of the rider put by the J&K Bank for the accounts which have collateral security against their loans accounts,” he said.
Tenga said they have taken up the matter with the MD J&K Bank and are hopeful that the “rider” will be lifted with the enhancement in the timing as well for the liquidation of liabilities for all those who want to avail of the OTS.
“We have also urged the bank to put a stop to seizing or publicizing names of defaulters,” he said, adding that a comprehensive policy should be adopted so that those turned NPAs could make a settlement with the bank.
Demanding one more OTS, the KCCI president said the current OTS is limited to a certain amount. He said there are people who have liabilities beyond that amount as well and want to liquidate the same for which a new OTS should be introduced which can cover them all without any riders.
“One more OTS should be introduced which can cover the people who owe money to the bank beyond 50 lakh rupees,” Tenga said, adding that the scheme should be enhanced with a liquidation time frame of at least two years and should be open to all without any “riders”—(KNO)