The liquidator for Charminar Cooperative Urban Bank Ltd has announced a one-time settlement (OTS) scheme which has been sanctioned by the Commissioner for Cooperation and Registrar of Cooperative Societies.
Sources said around 3,000 borrowers to pay around ₹ 94 crore. “The scheme is open till March 31, 2019. Borrowers will get substantial benefits with reduced rates of interest. After arriving at the OTS amount, the borrower has to make 10% down payment and the remaining balance shall be cleared in 90 days,” a note from the liquidator reads.
There are different structures of repayment for the borrowers.
The bank fell on hard times after death of its chairman Syed Alamdar Hussain in 2002. In 2011, RBI reportedly cancelled its licence after efforts of a turnaround failed. After this development, attempts to liquidate the bank began.