NDCC special AGM approves one-time settlement scheme for defaulters

Time of India

04-07-2025

Nashik: The special annual general meeting of Nashik District Central Cooperative Bank has approved one-time settlement (OTS) proposal for defaulters .
The proposal was discussed in a meeting with finance minister and deputy chief minister Ajit Pawar in Mumbai.
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A meeting of the depositors, along with farmers, took place at Kalidas Kalamandir. During the meeting, the defaulting farmers and their representatives emphasised the need for a complete waiver of loan and interest. However, the NDCC Bank administration, under the leadership of Vidyadhar Anaskar, the administrator of Maharashtra State Cooperative Bank appointed as organisational advisor of NDCC Bank, said that their demand would also be placed in front of the state govt.
"State agriculture minister Manikrao Kokate was also present at the meeting, where the depositors demanded their deposits back. There were farmers opposing govt-suggested OTS, which would still incur a loss to the bank but nevertheless help the bank retain its banking licence," said NDCC Bank administrator Santosh Bidwai while briefing the media after the meeting.
According to the new OTS, farmers who want to benefit from the scheme will have to settle their outstanding loans with interest rates announced in the AGM.
It will come into effect when the govt approves the proceedings of the AGM.
As per the new OTS, farmers with total outstanding up to Rs 1 lakh will have to pay 2 per cent interest, up to Rs 5 lakh will attract a 4 percent rate of interest, up to Rs 10 lakh will attract a 5 percent rate of interest, and beyond Rs 10 lakh will attract a 6 percent rate of interest.
"The outstanding loans of farmers accrued interest charged at prevailing rates for the first three years before the accounts were declared as non-performing assets (NPA) due to non-payment of dues.
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As of now, this amount has accrued further interest. But as per the new OTS, the amount at the time of being declared as NPA falling in respective slabs will attract a particular rate of interest," another senior officer said.
"This is the best possible scheme that the govt could offer to the defaulters, and the intention is to save the bank. It will take another four years for us to implement and clear the current outstanding. Besides, we are also seeking govt infusion of cash that will help us provide loans to people who need it to ensure we generate some more additional income. This can save the banking licence of NDCC Bank," the officer added.