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Schemes by Govt. for Bank Recoveries


Schemes by Government for Bank Recoveries
From time to time State Government instituted special arrangements to encourage recoveries under Madhya Pradesh Lok Dhan (Shodhya Rashiyon Ki Vasuli) Adhiniyam 1987, i.e. posting of Revenue Tehsildars, posting of retired revenue officials (Tehsildars) in banks, establishment of special recovery units in districts, delegation of powers of revenue officers (Tehsildars) to bank officials. In 1988 special rules were made under Madhya Pradesh Lok Dhan (Shodhya Rashiyon Ki Vasuli) Adhiniyam 1987 to establish “Special Recovery Unit” in the district for recovering the bank overdues. Provisions were made to confer recovery powers to bank officers to facilitate their recovery. Under these rules, Special Recovery Units were established in six selected districts on an experimental basis. These Units had to be closed down due to non-availability of the staff, besides poor performances. Apart from these the State Government has been advising the districts administration to extend due support for recovery of bank overdues through revenue machinery. During the year 1992-93, at the behest of the Development Commissioner all Collectors were asked to help banks in recovering their overdues in five chronic cases of willful defaulters per branch. All these arrangements failed to yield significant impact mainly due to lack of motivation on the part of officials posted for effecting bank recovery and lack of involvement of revenue administration in general. The need remained to strengthen the existing system of recovery, through sustained motivation and a stable institutional framework for action.