Key Points
Banks have urged the National Credit Guarantee Trustee Company Ltd (NCGTC) to cover the one-time settlement option for the resolution of stressed loans provided under the Emergency Credit Line Guarantee Scheme (ECLGS), said people with knowledge of the development...
At present, lenders need to initiate legal proceedings to avail of the full credit guarantee coverage provided by the NCGTC under the scheme..
One-time settlement schemes are not considered legal recourse and are not covered by the guarantee...
"We have requested that they consider it on a case-by-case basis, as in some cases the negotiated settlement amount is a much better proposition than taking recourse to legal recovery procedures, which further deteriorate the asset," said the executive, who did not wish to be identified...
"In other cases (amount more than 10 lakh), the NCGTC only releases the amount where the final claim filed by lenders is approved by a tribunal and accordingly executed," said the bank executive cited earlier...
