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RBI's 'one-time settlement' offer to defaulters
December 10, 2002 17:39 IST
Guidelines for asset reconstruction company too would be issued soon, the central bank said.
"We are still working on the one-time settlement scheme. It will come up shortly," RBI Deputy Governor Vepa Kamesam said after a meeting on SSIs at Planning Commission.
Although he did not divulge details, banking sources said the new one-time settlement scheme will be similar to the earlier one introduced in 2000-01.
The earlier OTS scheme of RBI was not successful in recovering a significant amount of bad loans. But in view of the Securitisation ordinance, it is expected that the new OTS would evoke overwhelming response from loan defaulters.
RBI was also working on the guidelines on ARCs after the Securitisation ordinance was promulgated. "The guidelines are expected shortly," Kamesam said.
Some of the banks are awaiting the guidelines as they intend to start operations of their own ARCs.
SBI, IDBI and ICICI Bank have promoted the Asset Reconstruction Company of India Ltd (ARCIL) with 24.5 per cent stake each.
IFCI has set up Asset Care Enterprise with 49 per cent stake and the remaining is likely to be held by Tourism Finance Corporation (10-15 per cent), domestic banks and multi-lateral agencies.
ARCs would take over NPAs from banks in exchange for debenture units, securitise them and sell it in the form of securities in the market.