As a part of its wider drive to reduce Non-Performing Assets, J&K Bank on Thursday rolled-out its second One-Time Settlement (OTS) scheme.
According to a statement, The Bank’s MD & CEO Baldev Prakash launched the scheme titled ‘JKB Special Karz Mukti Scheme – 2022’ for NPAs in presence of the entire top-management at corporate Headquarters.
Bank’s Divisional Heads of Jammu, Kashmir and Rest of India besides the Heads of all Zones and Clusters also joined the function through Video-Conferencing mode along with other senior officers.
Complementing the concerned team for devising such scheme, MD & CEO Baldev Prakash said, “I see ‘JKB Special Karz Mukti Scheme – 2022’ as an attractive offer developed for the targeted borrowers. Therefore I hope all the eligible account holders would avail this golden opportunity to settle their accounts and benefit from the best possible incentives, concessions provided under the scheme.”
Emphasizing upon the need for direct and in-person communication with borrowers to make them aware about the scheme parameters, MD &CEO directed the participants to persuade every borrower in person for early resolution under the scheme while working in close coordination with each other for effective implementation of the scheme.
Earlier, General Manager (IAPMD) Syed Shujaat Hussain Andrabi gave an overview of the Bank’s NPA Scenario and urged upon the participants to implement the OTS scheme which has been devised to provide an enabling environment to the operative levels to effect recoveries.
“Under the scheme, which is non-discretionary and non-discriminatory, faster payment of OTS amount has been incentivized. For making full payment within one month from the date of sanction, the beneficiary of the scheme can avail an incentive of 5% of the amount arrived at as per the settlement formula while as those paying within two months can avail 2% of the OTS amount as incentive”, he said.
A detailed presentation covering all the features of the scheme was made on the occasion. The scheme is valid for 3 months till 16th September, 2022 with maximum repayment period of six months from the date of sanction. The sanction or otherwise for the scheme will be accorded and conveyed within seven working days from the date of receipt of application.
The function concluded with MD & CEO expressing hope that the operative levels will reach out to all the eligible borrowers under the scheme and make it huge success.
Notably, accounts classified as Doubtful 3 (NPA for 4 years and above) and Loss assets with outstanding amount below Rs 15 lakhs as on 31st March, 2022 are eligible for settlement, which include cases pending before Courts/DRTs besides those wherein the Bank has issued notice u/s 13(2) or taken action u/s 13(4) of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act (SARFAESI-2002).