Launches OTS scheme to recover outstanding dues
MAPUSA
The Mapusa Urban Cooperative Bank (MUCB), which is going through liquidation, has processed claims of 29,000 depositors and released an amount of Rs 220 crore, even as the bank has come out with an OTS scheme to recover outstanding dues.
The MUCB’s liquidator, Anthony de Sa, informed that more than 90 percent of the eligible claim amount has been settled and the bank would now focus on recovering outstanding dues.
Announcing the completion of phase 1 of the liquidation process of the bank, the liquidator informed that claims of up to the insured amount of Rs 5 lakh approved by the Deposit Insurance and Credit Guarantee Corporation (DICGC) have been processed by the bank for payment and released in the past three months.
“I am happy to say that the money has been deposited in the accounts of the eligible persons. In case any person does not receive it within a week, then he should make an application to us so that we can check it up,” De Sa said in a press note released here on Wednesday.
He said the bank will now take up phase 2 of the liquidation process in which the bank will try to reconcile the information of those depositors whose KYC details were not updated or whose claims have been rejected by the DICGC.
He said these claims will be less than 10 percent of the total eligible claim amount.
“We can confidently say that more than 90 percent of the eligible claim amount has been settled,” De Sa said.
Stating that the bank will now be focusing on recovering outstanding dues, the liquidator said since April 16, 2020, when the bank lost its licence, there were 2,464 loan accounts.
He said 952 such accounts have been fully recovered during the past few months but 1,512 still remain outstanding and many such accounts have been NPAs.
“The bank has come out with a One Time Settlement (OTS) Scheme, in which partial compound interest and penalty waivers have been offered if the defaulting loanee settles the outstanding amount in a lump sum,” De Sa said.
“Legal action will be taken against those who ignore the repayment, as they would be depriving the depositors of their full amount,” he added.
He said that applications for availing of the OTS have been invited from July 1 to July 31 and the details of the scheme were made available on the website of the bank.
