State Bank of India (SBI) has launched a unique scheme — RBI-One Time Settlement II — to accelerate recovery of dues from non-performing accounts.
According to an SBI press statement issued here on Tuesday, RBI-OTS II, is more liberal than the earlier settlement schemes. The new scheme will be applicable to non-performing accounts with outstanding balance up to Rs 25,00,000 (principal) as on March 1, 1998. The scheme will cover all sectors and its guidelines will be in force till June 30, 2002.
SBI claims that this instant settlement formula under RBI guidelines is much more liberal than the earlier one-time-settlement schemes of RBI and SBI, which covered amounts up to Rs 5 crore and Rs 1 crore, respectively.
Under the present scheme, only principal outstanding as on March 31, 98 will qualify and the interest outstandings will not be applicable.