Schemes of Punjab Cooperatives

SCHEMES

Special Settlement Scheme-2000

Objectives

Opportunity to borrower defaulters for more than five years to clear.
Opportunity to clear Non Performing Assets (NPA).
Reduction in cost and time for recovery. Reduction in cost and time for recovery.
To encourage and assist genuine defaulters.
To facilitate mutually accepted reconciliation and settlement of dormant loan accounts.
To provide Buy Back facility for decreed property.
Defaulters for short, medium and long term loans for more than five years.
Defaulters for medium term loans for purchase of assets for more than five years.
Defaulters for consumption loan to weaker section for more than five years.
Members/Ex-employees involved in embezzlements.
Members whose land has been purchased.
Short term loans converted into medium term loan due to natural calamities.

Duration & Eligibility

Duration: The special settlement scheme is valid from 1st February to June 2001.

Eligibility: All overdue cases for more than five years in case of CCBS/PACS and six years in case of PADBS as on 31.01.2000 even if arbitration, awards have been obtained and execution of proceedings have been initiated.

Operational Guidelines

Preparation and submission of list of eligible borrowers to block and District Level Review Comities.
Eligible borrowers or legal heirs (in case of death) can apply on prescribed form for the scheme.
After review block level, Default Review Comities (BLRC) recommends to district Level Default Review Committee (DLRC)
After hearing the applicant DLRC recommends the case.
DLRC recommends to Provisional Authority (RA) and copy to applicant.
BLRC would meet on every 1st and 3rd Tuesday whereas DLRC would meet on 2nd and 4th Monday.
RA after considering the recommendations of DLRC and facts, pass specific order of settlement amount and amount to be written off.
RA should seek a priif of payment of settlement amount before passing final order.
CCB/PSCB would debit the difference amount as per RA's order without further sanctions from RCS and also liquidate outstanding amount from records.
The above procedure shall be followed for buy back facility of land purchased by the PACS/CCBS/PADBS, no relief of interest to the farmers under buy back facility.
The above procedure shall be followed for embezzlement cases even after taking legal measures for cases older than six years.

Relief

DLRC, on merits, decide about the charging of simple interest from date of account turned bad, provided that:

Amount reclaimed shall not be less than the principal amount plus 100% there of.
Amount received is principal amount plus 50% where the borrower has no asset or source of income.
In case of buy back facility, the original owner shall pay the total outstanding amount.
Any other action initiated earlier under IPC shall continue unabated, also the proceedings under the scheme shall not be prejudiced to on longing legal proceedings.
The amount of net loss to PACs/CCBs/PADBs shall be charged to reserve for Bad Doubtful Debts available with CCBs PADBs. There are no such reserves with PACs.

Revolving Cash Credit

In 1998, the cooperative banks launched a new scheme of revolving cash credit for the farmers. The scheme envisages to provide Cash credit limit to the farmers against the mortgage of their land for all credit requirements of the farmers. It aims at freeing them from the clutches of traditional money lenders. A cash credit limit of Rs.1,50,000/- is sanctioned to farmers having 5 acres of land and Rs.3 lacs for those having 10 acres of land. So far Rs.655.00 crores have been sanctioned under the scheme. The scheme has been evaluated by experts from the department of economics and sociology, PAU, Ludhiana.

Key Observations made by the Experts

The Revolving cash credit scheme has proved beneficial to the farmers its contribution has been multi directional. It has helps the farmers in the purchase of production inputs, farm investments, consumptions and social requirements and reduced their dependence on high interest loans.
The recovery under the scheme has been execellent and more than 70% of the credit availed under the scheme has been spent for productive purposes, whereas remaining was provided for consumption and other purposes.
Nabard should has no hesitation in providing refinance facility for the scheme.
The scheme has so far covered medium and large farmers and it should be extended to cover small and marginal farmers as well.
The rate of interest on credit facility under the scheme should be reduced.
Revolving cash credit has supplemented inadequate availability of production credits besides creating provisions for consumption credit. Therefore, its role is complementary to the institutions credit available to farmers from different sources. Revolving cash credit scheme should be strengthen and expanded.

Sehkari Bima Yojna

The Cooperative Banks in Punjab are pioneers of starting the Sehkari bima Yojna w.e.f. 01.06.1999 in the country. Under this scheme, every depositor who opens a Saving Bank Account with Rs.1100/- or more is provided Personal Accidental Insurance cover for Rs. 1 lakh, during the period he keep s the account with the bank, at a very nominal premium. The scheme has benefited the undreprivlelaged. rural masseds, particularly those who have no access to the insurance companies. More than 12,05,000 depositors have been covered under the scheme.

Kisan Credit Card Scheme

A new scheme namely ‘Kisan Credit Card Scheme’ has been implemented by the bank for the benefit of farmers. The Scheme improves upon existing scheme of Crop Loans by allowing the farmers flexibility and freedom of choice to avail and repay loans as per their requirements. Under the scheme, 1,87,000 cards have been issued to the farmers upto 31.3.2001. Maximum Credit Limit of the farmers has been raised from Rs. 70,000 per crop to Rs. 85,000 per crop.

Jeevan Raksha Pension-cum-Gratuity Scheme

A new scheme namely, Jeevan Raksha Pension-cum-Gratuity Scheme has been started by the bank particularly for the benefit of rural old farmers who can enjoy pension facility in their old age by depositing Rs. 500/- per month for 10 years and will get pension Rs. 650/- per month. If the depositor dies before 10 years, the nominee of the deceased is allowed to continue to deposit the money in the scheme and for the pension after 10 years.

LIC-Linked Employees Pension Scheme

The Board of Directors of the Punjab State Cooperative Bank in its meeting held on 9.2.2001 has decided to implement a LIC-Linked Pension Scheme for all employees of the Bank.

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SCHEMES

Special Settlement Scheme-2000

Objectives

Opportunity to borrower defaulters for more than five years to clear.

Opportunity to clear Non Performing Assets (NPA).

Reduction in cost and time for recovery. Reduction in cost and time for recovery.

To encourage and assist genuine defaulters.

To facilitate mutually accepted reconciliation and settlement of dormant loan accounts.

To provide Buy Back facility for decreed property.

Defaulters for short, medium and long term loans for more than five years.

Defaulters for medium term loans for purchase of assets for more than five years.

Defaulters for consumption loan to weaker section for more than five years.

Members/Ex-employees involved in embezzlements.

Members whose land has been purchased.

Short term loans converted into medium term loan due to natural calamities.

Duration & Eligibility

Duration: The special settlement scheme is valid from 1st February to June 2001.

Eligibility: All overdue cases for more than five years in case of CCBS/PACS and six years in case of PADBS as on 31.01.2000 even if arbitration, awards have been obtained and execution of proceedings have been initiated.

Operational Guidelines

Preparation and submission of list of eligible borrowers to block and District Level Review Comities.

Eligible borrowers or legal heirs (in case of death) can apply on prescribed form for the scheme.

After review block level, Default Review Comities (BLRC) recommends to district Level Default Review Committee (DLRC)

After hearing the applicant DLRC recommends the case.

DLRC recommends to Provisional Authority (RA) and copy to applicant.

BLRC would meet on every 1st and 3rd Tuesday whereas DLRC would meet on 2nd and 4th Monday.

RA after considering the recommendations of DLRC and facts, pass specific order of settlement amount and amount to be written off.

RA should seek a priif of payment of settlement amount before passing final order.

CCB/PSCB would debit the difference amount as per RA's order without further sanctions from RCS and also liquidate outstanding amount from records.

The above procedure shall be followed for buy back facility of land purchased by the PACS/CCBS/PADBS, no relief of interest to the farmers under buy back facility.

The above procedure shall be followed for embezzlement cases even after taking legal measures for cases older than six years.

Relief

DLRC, on merits, decide about the charging of simple interest from date of account turned bad, provided that:

Amount reclaimed shall not be less than the principal amount plus 100% there of.

Amount received is principal amount plus 50% where the borrower has no asset or source of income.

In case of buy back facility, the original owner shall pay the total outstanding amount.

Any other action initiated earlier under IPC shall continue unabated, also the proceedings under the scheme shall not be prejudiced to on longing legal proceedings.

The amount of net loss to PACs/CCBs/PADBs shall be charged to reserve for Bad Doubtful Debts available with CCBs PADBs. There are no such reserves with PACs.

Revolving Cash Credit

Key Observations made by the Experts

The Revolving cash credit scheme has proved beneficial to the farmers its contribution has been multi directional. It has helps the farmers in the purchase of production inputs, farm investments, consumptions and social requirements and reduced their dependence on high interest loans.

The recovery under the scheme has been execellent and more than 70% of the credit availed under the scheme has been spent for productive purposes, whereas remaining was provided for consumption and other purposes.

Nabard should has no hesitation in providing refinance facility for the scheme.

The scheme has so far covered medium and large farmers and it should be extended to cover small and marginal farmers as well.

The rate of interest on credit facility under the scheme should be reduced.

Sehkari Bima Yojna

Kisan Credit Card Scheme

Jeevan Raksha Pension-cum-Gratuity Scheme

LIC-Linked Employees Pension Scheme

The Board of Directors of the Punjab State Cooperative Bank in its meeting held on 9.2.2001 has decided to implement a LIC-Linked Pension Scheme for all employees of the Bank.