Mangaluru: Deputy Registrar of Cooperative Societies B K Saleem has asked the cooperative societies to follow the guidelines strictly while lending loans to its customers on Tuesday, October 23.
Speaking after inaugurating a training programme on `Recovering of Loans` to Chief Executive Officers (CEOs) and loan recovery staff at the auditorium of Campco office in the city, Saleem said that recovery of loans would be more difficult if they are given by violating the guidelines. “Before auctioning the property of a defaulter, proper notice should be served to him. After issuing a notice, the cooperative society should wait for a certain period. There should be at least three bidders while auctioning the properties of a defaulter. However, there are certain instances where only two bidders are present during the auction. In such a case, it is not legally right to auction the property”, he said.
Meanwhile, Saleem informed that the CEO’s should not budge under any pressure while issuing loans to anybody. “Cooperative Societies should not lend money to the tune of 5 percent of working deposit to a single customer. If the loans are not be recovered, CEO of the Cooperative Bank will be held responsible. The Board of Directors also will also be held responsible if the loans are recovered. Hence, before to issue loans the guidelines must be followed”, he said.
Cooperative Banks also to implement Cibil system
Usually nationalised banks consider the credit report provided by Cibil (Credit Information Bureau India Limited) while releasing loans to a particular person. Due to this system, the details of loans and credit cards of a person easily come to the notice of banks, which helps them to decide whether to release or not to release loan to such person. However, there was no such system in cooperative banks so far. But, the same system would be implemented by the cooperative banks also.
Shedding light on the new system, Odiyoor Sri Multipurpose Co-operative Limited President A Suresh Rai said cooperative banks would also implement the Cibil system in the near future. Once it is implemented, we can track the defaulters easily”, he said.
During the daylong workshop, several resource persons were given some valid tips with regard to the recovery of loans. Senior divisional officer Guruprasad Bangera, Divisional Officer of Mysuru Y Kumar among others were present.
