In a significant development, Chief Minister Sukhvinder Singh Sukhu has directed the Himachal Pradesh State Cooperative Bank to explore the formulation of a One Time Settlement (OTS) policy, aimed at providing substantial relief to its customers. The directive came during a recent meeting at Oak Over with the bank’s Chairman, Devender Shyam, and Managing Director, Shravan Manta.
During the meeting, the Chief Minister instructed the bank to collaborate with NABARD and the Reserve Bank of India in developing a comprehensive OTS policy. This strategic initiative seeks to extend support to thousands of farmers, horticulturists, and other borrowers associated with the bank.
Under the envisioned OTS policy, borrowers would have the opportunity to settle their outstanding dues at a discounted rate, thereby avoiding legal actions and improving their credit scores upon successful settlement. Chief Minister Sukhu emphasized the dual benefits, stating that the bank would also experience positive outcomes by enhancing its overall financial health through the recovery of non-performing assets and reduction of long-standing debts.
Sukhu estimated that over 5,000 individuals would directly benefit from this policy, marking a significant step towards alleviating the financial burden on the bank’s customers. Additionally, he announced similar instructions for Kangra Central Cooperative Bank and Jogindra Central Cooperative Bank to explore and formulate their own OTS policies, ensuring the best interests of their consumers.
This proactive exploration by the Himachal Pradesh State Cooperative Bank showcases a commitment to addressing the financial challenges faced by its customers, fostering a cooperative banking environment. While the OTS policy is still in the formulation stage, it holds the potential to positively impact not only the bank but also the agricultural and horticultural communities it serves.
