वसूली ववभाग/ Recovery Department

प्रधान कार्ाालर् :लोकमंगल, 1501, विवाजीनगर, पुणे 5-

Head Office: LOKMANGAL,1501, SHIVAJINAGAR,
PUNE-5 टे लीफोन/TELEPHONE: 020-25614455,
25614325
फै क्स /FAX : 25512352
ई-मेल/e-mail: agmrecovery2@mahabank.co.in
AX1/Recovery/OTS Scheme/Cir No 7/2023-24 24th May 2023

All Zonal Offices & Branches of the Bank

Dear Sir/ Madam,

Subject- Continuation of OTS Schemes with modifications:

1. Maha Sahyog Yojana 2023-24

2. Maha Sandhi Yojana 2023-24

Considering present economic conditions, policies, market sentiments etc. and various
suggestions received from the field functionaries, Board in its meeting dated 20th May 2023
has approved continuation of Suo Moto OTS Schemes namely “Maha Sahyog Yojana
2023-24” for NPA accounts with Ledger Balance upto Rs. 1.00 Cr. and “Maha Sandhi
Yojana 2023-24” for NPA accounts with Ledger Balance above Rs. 1.00 Cr. to Rs. 50.00
Cr with modifications effective from 01st June 2023.

Detailed features of modified OTS schemes are mentioned as below-

MAHA SAHYOG YOJANA 2023-24

1 Coverage All NPA accounts having Customer Ledger Balance up to
Rs. 1.00 Crore as on 31.03.2023, subject to fulfilment of
other guidelines mentioned herein below.
2 Eligible Cases A All NPA accounts in Doubtful- 1, Doubtful- 2, Doubtful- 3,
Loss and TWO and RWO category as on 31.03.2023.
Security value is to be considered in accounts having
Ledger Balance more than Rs 50.00 Lakhs.
B All Agriculture Loans in Substandard Category as of
31.03.2023.
C Accounts under Consortium or Multiple Banking
arrangements will also be eligible.
D Cases pending before Courts/ Decreed cases are eligible.
However, consent decree in Non-Decreed cases have to
be obtained from respective Courts as per OTS Sanction.
E i) Cases where Bank has issued notices u/s 13 (2) or
taken action u/s 13 (4) of the SARFAESI Act, 2002 are
eligible under the Scheme.

ii) Accounts where Bank holds Physical Possession of

the Immovable Property/ies under SARFAESI Act,
shall also be eligible provided that in such cases,
minimum OTS amount will be higher of DSV or
Applicable slab. However, this Clause is not applicable,
if E- auction is failed for minimum 1 time.

Recovery_OTS Scheme_Maha Sahyog_Maha Sandhi 2023-24 Page 1 | 9

 F i) Fraud and Wilful Defaulter cases are eligible subject to
sanction by the Management Committee.
ii) Where the account is declared as Fraud, the Branch
must ensure filing of FIR with CBI/ Police Station
before presenting the OTS (One Time Settlement)
proposal to the Competent Authority. Once OTS is
approved, a letter covering Bank’s intension to enter
into OTS purely as a commercial decision, pending
investigation should be sent to the Investigating
Authority (IA) and should wait for their response for 30
days from the date of receipt by IA before conveying
Sanction to the Borrower/s.
G i) All Housing Loans & Top up loans with sanctioned
amount of Rs. 10.00 lakh and outstanding Ledger
Balance upto Rs. 10.00 lakh having mortgaged
security.
ii) Housing Loans under various Govt. Schemes having
Ledger Balance upto Rs. 10.00 lakh.
iii) Housing loans, where loans are sanctioned on TPA
and / or property sold by the Bank or where no physical
security is available are also eligible within the cap of
this Scheme.
iv) Additionally, Housing loans under such Housing
projects, which are incomplete due to various reasons
like any litigation or where Builder is absconding etc.
are also eligible within the cap of this Scheme.
H i) NCLT admitted cases where the finance is under Sole
Banking.
ii) NCLT admitted cases where our bank has minimum
90% voting share as per IBC 2016.
I Accounts, having CASA/ Term Deposits/ LAD/ Paper
securities like LIC policies, NSC, KVP etc./ pledge of Gold
shall be eligible subject to condition that OTS will be done
on remaining Ledger Balance after adjustment of such
securities.
3 Ineligible Cases a Accounts related to Staff.
b Housing Loans with mortgaged security having Ledger
Balance above Rs. 10.00 lakh and other than those
referred to in under “Eligible cases” category above.
c “Compromise cases” already under repayment.
d Units under rehabilitation/ restructured, which are not
failed.
e Central Government/ State Government guaranteed
accounts.
f Sub Standard Accounts except Agri loan accounts.
g (i) Accounts which have been sanctioned on or after
01.04.2021 and NPA on 31.03.2022; and

(ii) Agriculture Accounts which have been sanctioned

on or after 01.04.2022 and NPA on 31.03.2023.

Recovery_OTS Scheme_Maha Sahyog_Maha Sandhi 2023-24 Page 2 | 9

4 Settlement Amount as per the Scheme

LB up to LB above Rs. LB above Rs. 50.00 lakh and up to Rs. 100.00 lakh
Rs. 25.00 25.00 lakh and
lakh up to Rs. 50.00
lakh
Security Irrespective of the value of the If the Value of the If the Value of the If the Value of the
security security is less security is 50% to security is more than
than 50% of the 100% of the present 100% of the present
present LB. LB. LB.
(1) (2) (3) (4) (5)

Age of NPA 1. Non- Agriculture category

NPA on or 40% of LB 55% of LB 55% of LB 60% of LB 65% of LB

before
31.03.2018
NPA between 65% of LB 70% of LB 70% of LB 75% of LB 80% of LB
01.04.2018 to
31.03.2020
NPA between 80% of LB 80% of LB 80% of LB 85% of LB 90% of LB
01.04.2020 to
31.03.2022
2. Agriculture category

NPA on or 30% of LB 50% of LB 50% of LB 55% of LB 60% of LB

before
31.03.2018
NPA between 60% of LB 60% of LB 60% of LB 65% of LB 70% of LB
01.04.2018 to
31.03.2020
NPA between 75% of LB 75% of LB 75% of LB 80% of LB 85% of LB
01.04.2020 to
31.03.2022
NPA between 100% of LB*
01.04.2022 to *Note: In Accounts under this category, if any Non- Agriculture Security (SARFAESI Compliant) is
31.03.2023 available having value more than 100% of LB, then 10% of Un-Applied Interest (UAI) is to be taken
additionally.

 Security value will be based on the DSV of the secured assets.

 For Securities, which are agriculture in nature, then Govt. Value shall be considered.
 The Valuation of the securities should not be older than 1 year from the date of submission of the OTS
proposal to the Competent Authority.
5 Validity of OTS Scheme The scheme is effective from the date of its
implementation i.e. 1st June 2023 and valid up
to 31.03.2024.
6 Validity of OTS Sanction OTS Sanction will be valid for 3 months from the
date of sanction or 31.03.2024, whichever is
earlier.
7 Revalidation of OTS Sanction Revalidation of Sanction is allowed by the
original Sanctioning Authority, subject to
recovery of delayed period interest at highest
applicable rate i.e. RLLR + 5% at present on
balance OTS amount from the date of default till
actual repayment of OTS amount, latest by
31.03.2024.

In Exceptional cases, if deviation is sought

by the Borrower with respect to the said
Interest rate, the same to be referred to the
Recovery Dept., H.O. for decision as per
Recovery Management and Compromise
Policy.
8 Sanctioning Authority i) Upto LB of Rs. 25.00 lakh:- Branch Head
irrespective of scale.
ii) LB above Rs. 25.00 lakh to Rs. 50.00
lakh:- ZLCC of DZM

Recovery_OTS Scheme_Maha Sahyog_Maha Sandhi 2023-24 Page 3 | 9

 iii) LB above Rs. 50.00 lakh to Rs. 100.00
lakh:- ZLCC of ZM
iv) Fraud & Wilful Default Cases:-
Management Committee irrespective of
Ledger Balance amount.
9 Rejection of Proposal  The scheme is non-discriminatory and
non-discretionary.
 The Branches/ Zonal functionaries do not
have authority to reject / return the proposal
within their sanctioning powers.
 For OTS proposals within the sanctioning
powers of the Branch, ZLCC of the Zonal
Manager shall be the Competent Authority for
rejection/ return of the OTS proposal.
 For OTS proposals within the sanctioning
powers of the Zone, CAC- III at H.O. shall be
the Competent Authority for rejection/ return
of the OTS proposal.
 In Fraud and Wilful Defaulter declared cases,
Management Committee of Board shall be
the Competent Authority for rejection/ return
of the OTS proposal.
10 Processing Fee  0.5% of the OTS amount, minimum Rs.
500.00 along with applicable GST to be taken
upfront along with OTS proposal.
11 Down Payment / Upfront Borrowers having Ledger Balance up to Rs.
Amount 25.00 lakhs:

Down Payment @ 5% be explored as far as

possible at the time of application. If Borrower is
not in a position to meet the obligation of
depositing the down payment, the Sanctioning
Authority to stipulate a time period for depositing
such down payment.

Borrowers having Ledger Balance above Rs.

25.00 lakhs:

10% of OTS amount be received along with

application and the same must be credited to
Loan Account.
Or
25% of OTS amount be received along with
application and the same be kept in “No Lien
Account”.
12 Deviation CAC III be empowered to consider deviations
from the scheme in case of NPA accounts in
Agriculture & Government sponsored schemes.
13 Issuance of “No dues “No Dues Certificate” be issued on specific
Certificate” request of the Borrower mentioning clearly

Recovery_OTS Scheme_Maha Sahyog_Maha Sandhi 2023-24 Page 4 | 9

 therein that “the dues are settled by mutually
agreed terms involving sacrifice on the part of
the Bank”.
14 Reimbursement of LB sacrifice Branches shall punch the OTS data in Maha
amount OTS software to claim the LB sacrifice amount.
15 Punching of OTS proposals in Branches have to punch the OTS proposal data
ULC portal in web based OTS portal.

16 Noting Authority  OTS proposals sanctioned by the Branch

17 Regarding Intimation Letter
Head: ZLCC of DZM
 OTS proposals sanctioned by the ZLCC of
DZM: ZLCC of ZM
 OTS proposals sanctioned by the ZLCC of
ZM: CAC- III/ CAC- II
In the intimation letters to be given to the
Borrowers/ Guarantors, the amount of OTS
offer calculated as the Scheme will be
mentioned in the Accounts having Ledger
Balance upto Rs. 25.00 lakh only.

Recovery_OTS Scheme_Maha Sahyog_Maha Sandhi 2023-24 Page 5 | 9

 MAHA SANDHI YOJANA 2023-24
1 Coverage All NPA accounts having Customer Ledger Balance above Rs.
1.00 Crore and up to Rs. 50.00 Crore as on 31.03.2023,
subject to fulfilment of other guidelines mentioned herein
below.
2 Eligible Cases a All NPA accounts in Doubtful- 1, Doubtful- 2, Doubtful- 3, Loss,
TWO and RWO category as on 31.03.2023.
b Accounts under Consortium or Multiple Banking arrangements
will also be eligible.
c Cases pending before Courts/ Decreed cases are eligible.
However, consent decree in Non-Decreed cases have to be
obtained from respective Courts as per OTS Sanction.
d i. Cases where Bank has issued notices u/s 13 (2) or taken
action u/s 13 (4) of the SARFAESI Act, 2002 are eligible
under the Scheme.
ii. Accounts where Bank holds Physical Possession of the
Immovable Property/ies under SARFAESI Act, shall also be
eligible provided that in such cases, minimum OTS amount
will be higher of DSV or Applicable slab. However, this
Clause is not applicable, if E- auction is failed for minimum
2 times.
e i. Fraud and Wilful Defaulter cases are eligible subject to
approval by the Management Committee.
ii. Where the account is declared as Fraud, the Branch must
ensure filing of FIR with CBI/ Police Station before
presenting the OTS (One Time Settlement) proposal to the
Competent Authority. Once OTS is approved, a letter
covering Bank’s intension to enter into OTS purely as a
commercial decision, pending investigation should be sent
to the Investigating Authority (IA) and should wait for their
response for 30 days from the date of receipt by IA before
conveying Sanction to the Borrower/s.
f i. Housing loans, where loans are sanctioned on TPA and / or
property sold by the Bank or where no physical security is
available are also eligible within the cap of this Scheme.
ii. Additionally, Housing loans under such Housing projects,
which are incomplete due to various reasons like any
litigation or where Builder is absconding etc. are also
eligible within the cap of this Scheme.
g NCLT cases where the finance is under sole Banking.
h Accounts, having CASA/ Term Deposits/ LAD/ Paper securities
like LIC policies, NSC, KVP etc./ pledge of Gold shall be
eligible subject to condition that OTS will be done on remaining
Led. Balance after adjustment of such securities.
i Accounts, where OTS is failed previously, shall be eligible
under the present scheme. However, in all such accounts,
the OTS shall be put up to the sanctioning authority not
lower than the sanctioning authority who had sanctioned
the OTS proposal for the last time.

Recovery_OTS Scheme_Maha Sahyog_Maha Sandhi 2023-24 Page 6 | 9

3 Ineligible Cases a Housing Loans having mortgaged security other than those
referred to in “Eligible cases” category above.
b Accounts related to Staff.
c “Compromise cases” already under repayment.
d Units under rehabilitation/ restructured, which are not failed.
e Central Government/ State Government guaranteed accounts.
f Sub Standard Accounts.
g Accounts which have turned to NPA within 1 year from the
date of sanction i.e. accounts sanctioned on or after
01.04.2021 and NPA on 31.03.2022.
h Cases referred to NCLT under Insolvency and Bankruptcy
code, 2016 will not be eligible unless agreed upon by more
than 90% of lenders by value.
4 Minimum Expected Recovery (MER) as per the Scheme

1. For Securities value > 100% of Ledger Balance

One Time Settlement (OTS) amount
OTS amount will be Minimum 100% of the LB as on date of receipt of OTS proposal, irrespective of age of
NPA.
2. For Securities value < 100% of Ledger Balance
LB above Rs. 1.00 cr. to 25.00 cr. LB above Rs. 25.00 cr. to 50.00 cr.

One Time Settlement (OTS) amount

Age of NPA On Secured On Unsecured On Secured On Unsecured
Portion of LB Portion of LB Portion of LB Portion of LB

NPA on or before
31.03.2018 65% 40% 70% 40%

NPA between
01.04.2018 to 31.03.2020 70% 40% 75% 40%

NPA between
01.04.2020 to 31.03.2022 70% 45% 75% 45%

5 Validity of OTS The new scheme is effective from date of its implementation i.e.
Scheme 1st June 2023 and valid up to 31.03.2024.
6 Validity of OTS OTS Sanction will be valid for 3 months from the date of sanction
Sanction or 31.03.2024, whichever is earlier.
7 Revalidation Revalidation of Sanction is allowed by the original Sanctioning
Authority, subject to recovery of delayed period interest at highest
applicable rate i.e. RLLR+ 5% at present on balance OTS
amount from the date of default till actual repayment of OTS
amount, latest by 31.03.2024.

In Exceptional cases, if deviation is sought by the Borrower

with respect to the said Interest rate, the same to be referred
to the Recovery Dept., H.O. for decision as per Recovery
Management and Compromise Policy.
8 Sanctioning The sanctioning powers will be as per HO Circular No.
Authority AX1/Recovery/Review of Policy 2021-22/Cir No.- 27 dated
09.03.2022 or any amendments therein.
9 Rejection of  The scheme is non-discriminatory and non-discretionary.
Proposal  The Branch/ Zonal functionaries do not have authority to reject
/ return the proposal within their sanctioning powers.

Recovery_OTS Scheme_Maha Sahyog_Maha Sandhi 2023-24 Page 7 | 9

  For OTS proposals within the sanctioning powers of the
Branch, ZLCC of the Zonal Manager shall be the Competent
Authority for rejection/ return of the OTS proposal.
 For OTS proposals within the sanctioning powers of the Zone,
the CAC- III shall be the Competent Authority for rejection/
return of the OTS proposal.
 For OTS proposals within the sanctioning powers of the CAC-
III & above, the respective Committee shall be the Competent
Authority for rejection/ return of the OTS proposal.
10 Processing Fee  0.5% of OTS amount or Rs. 5.00 lakh, whichever is less,
along with applicable GST to be taken upfront along with OTS
proposal. The processing fee shall not be refunded even if
OTS proposal is rejected or returned.
11 Down Payment / 10% of OTS amount be received along with application and the
Upfront Amount same must be credited to Loan Account.
Or
25% of OTS amount be received along with application and the
same be kept in “No Lien Account”.
12 Deviation CAC III be empowered to consider deviations from the scheme in
case of NPA accounts in Agriculture & Government sponsored
schemes.
13 Issuance of “No “No Dues Certificate” be issued on specific request of the
dues Borrower mentioning clearly therein that “the dues are settled by
Certificate” mutually agreed terms involving sacrifice on the part of the Bank”.
14 Reimbursement Branches shall punch the OTS data in Maha OTS software to
of LB sacrifice claim the LB sacrifice amount.
amount
15 Punching of Branches have to punch the OTS proposal data in web based
OTS proposals OTS portal.
in ULC portal
17 OTS Noting i. OTS proposals sanctioned by the Branch Head :- ZLCC of
Authority DZM
ii. OTS proposals sanctioned by the ZLCC of DZM: ZLCC of ZM
iii. OTS proposals sanctioned by the ZLCC of ZM: Respective
Committee at HO.

General Guidelines:
 While sanctioning OTS in CGTMSE/ECGC settled accounts, respective sanctioning
authority must ensure that the settlement amount calculation must be derived by taking
the CGTMSE/ECGC settlement amount, amount to be returned etc. in to consideration.
 Ledger Balance as on the date of OTS Application be considered for calculation of
settlement amount.

 Secured Portion of Ledger Balance should be decided on the basis of Distress Sale
Value of Security as per Valuation Report from the Panel Valuers not older than 1 Year
as on Date of OTS application from Borrower with Down payment.

 Staff accountability aspects, if any, should have been examined and put up to the
appropriate authority before entertaining the OTS proposal. However, in case the staff
accountability report is submitted and pending at any level, the recommendations should
be incorporated in the proposal and no proposal should be declined even if staff
accountability has not been concluded.

Recovery_OTS Scheme_Maha Sahyog_Maha Sandhi 2023-24 Page 8 | 9

 In case the applicant is a corporate borrower, resolution of the Company be obtained
along with OTS application.

 All other guidelines of Recovery management & Compromise policy shall be applicable.

 Sanction of fresh credit facilities to the borrowers / guarantors, whose account(s) have
been settled through compromise:
i) No fresh credit facilities should be sanctioned to the borrowers and guarantors - or to
the entities in which they are interested where dues are settled through compromise.
ii) However, in deserving cases, fresh credit facilities may be sanctioned/issued,
provided:
a. In case of Agriculture loan accounts, borrower pays sacrifice in Ledger balance and
unapplied interest at the RLLR or contractual rate, - whichever is lower - up to the
date of payment of dues (This clause is not applicable for NPA Accounts settled
under Special OTS Scheme for Agriculture NPA Borrowers).
b. In case of non-agriculture loan accounts, borrower pays sacrifice in Ledger Balance
and unapplied interest at contractual Rate up to the date of payment of dues.
c. The decision as regards fresh financing should invariably be taken by the ZLCC and
not by the Branch Head.

For any suggestion/ clarification, please write email to:

agmrecovery2@mahabank.co.in & agmsamv@mahabank.co.in

Wishing you Best Luck!

VENKATNARAY Digitally signed by
VENKATNARAYANAN PRASHANT Digitally signed by
PRASHANT RAMAKANT
ANAN NAGAIAH NAGAIAH SIRAPURAPU RAMAKANT KHATAVKAR
Date: 2023.05.24 19:50:13
SIRAPURAPU Date: 2023.05.24
+05'30' KHATAVKAR 19:51:26 +05'30'

S Venkata Narayana P R Khatavkar

Deputy General Manager General Manager
SAMV & Recovery Recovery, SAMV & Legal Services

Recovery_OTS Scheme_Maha Sahyog_Maha Sandhi 2023-24 Page 9 | 9