One time settlement for ex directors, cooperative banks

I took loan from a cooperative bank for Micro-manufacturing industry in 1993 with adequate security, giving mortgage of property. This facility was enhanced from time to time as per requirement. In 2010 the accounts went into NPA. Still it is in NPA. In January 2018 I applied to the bank for settlement for this account under OTS scheme declared by Maharashtra State government. I was elected director of this bank during the period 1979-1982 thereafter I was not concerned to the Bank in any way. So as per circular the bank has sent my OTS proposal to RBI for obtaining its permission, as I was ex-director of the bank. Now the bank is saying that my above proposal is pending with RBI from last 8 months. Due to this my proposal of OTS is still pending with the Bank. Please guide me for next course of action to get relief under OTS scheme.

Asked 7 years ago in Civil Law

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5 Answers

Hello,

File an RTI with the RBI to inquire about the status of the OTS that has been forwarded by the bank to them.

They are bound to give you the benefit that has been extended by the State Government.

Regards

Anilesh Tewari

Advocate, New Delhi

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1)you have to wait for reply from RBI to your OTS proposal

2) ask bank to send reminders to RBI

3) your OTS proposal would be processed by bank based on feedback received from RBI

Ajay Sethi

Advocate, Mumbai

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The gap between expiration of term of directorship and obtaining loan is about 12 years. Also the gap between expiration of my directorship and the proposal (2018) is about 36 years. 
In my case am I eligible for OTS scheme or not?

Asked 7 years ago

Under the OTS scheme the proposal need to be cleared from the committee established by the RBI to bank to accept same further you can enquire status in the RBI.In condition the proposal receive the assent you will get benifit of same.