Nashik District Central Co-operative bank to attach bank accounts of wilful defaulters – ET BFSI

The Nashik District Central Co-operative (NDCC) bank — the largest co-operative bank with around 200 branches — has started the process of attaching accounts of the wilful defaulters in other banks as the financial institution has outstanding dues to the tune of Rs 1,700 crore. Speaking to TOI, CEO of the bank Shailesh Pingle said that under section 156 of the Maharashtra Cooperative Societies Act, 1960, the bank can attach the bank accounts of defaulters with accounts in other banks.

“The cooperative department’s joint registrar office has given the nod to the NDCC bank for starting the attachment process of the defaulters,” he said.

According to the CEO, the bank has prepared a list of all the defaulters with their addresses and it is in the process of sending the list to other banks depending on the locality where the defaulters live. Once other banks receive the list, they will attach the bank accounts of defaulters. Pingle said that the bank has set a deadline of February 15 to complete this entire process of sending the list of defaulters to other banks.

“We have to take this extreme step as these defaulters are not repaying their dues despite several reminders,” he said, but but refused to disclose the total number of wilful defaulters.

Moreover, the bank has also introduced a one-time settlement (OTS) option for the loan defaulters and the scheme is in effect till January 31.

Under this scheme, the defaulters will get 50% waiver on the interest amount on loan if they repay the basic loan amount.