Financial Daily from THE HINDU group of publications
Friday, Sep 19, 2003
Financial Daily from THE HINDU group of publications Friday, Sep 19, 2003 |
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Money & Banking
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Non-Performing Assets Kerala co-ops can take over assets Our Bureau
THIRUVANANTHAPURAM: The State Government has effected necessary changes in the co-operative banking rules giving cooperative banks the powers to take over, without having to wait for intervention by courts/tribunals, mortgaged assets when loans raised against them are defaulted beyond a specific duration. A spokesman said here that the relevant changes have been made in the statutes as a step aimed at reducing non-performing assets in the cooperative banking system. All banking institutions coming under the purview of the Banking Regulation Act, such as the State Cooperative Bank, District Cooperative Banks and Primary Cooperative Banks, would stand to benefit from the new provisions. The amended rules require that in the case of loan accounts that are not being serviced in the prescribed manner, the bank should proceed to issue a notice to account holder, asking him/her to clear the arrears within 60 days from the date of notice. It should specify the amount outstanding against his/her name and details of the mortgaged asset that the bank intended to take over in the event of continued default.
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