More than 50 per cent of the applications received in the module under the recent Reserve Bank of India (RBI) guidelines for recovery of dues relating to NPAs of public sector banks through OTS, have been settled.

Mr Sambasiva Rao, Deputy General Manager, SBI, Ernakulam Zone, said here that out of the total 4,560 applications received, over 2000 have been settled. Around Rs 5.6 crore has been collected in these cases. He said about 20 per cent of the NPAs of the module come under the purview of the RBI OTS scheme.

In response to intimation given to eligible borrowers, 25 per cent of such borrowers have approached the bank.

The response to the scheme has been encouraging so far, he said, adding, the remaining defaulters should come forward before March 31, 2001, the deadline set by the RBI.

RBI had issued guidelines relating to recovery of dues of NPAs of public sector banks in the month of July 2000. Under the scheme, eligible borrowers could settle their dues while availing substantial interest concessions, though subject to some conditions. All default borrowers, irrespective of segments, with outstandings worth Rs 5 crore, which were classified as NPAs as on 31 March, 1997, including those pending under RR proceedings court cases DRT BIFR, were eligible for the OTS under the scheme.

Mr Rao said eligible borrowers have to reach a settlement before the stipulated deadline and have to remit the settled amount as a one time payment.

In respect of those who find it difficult to make the one time payment, the scheme provides for a down payment of 25 per cent of the settled amount first and the balance in installments within a period of one year.