TRIPURA GRAMIN BANK
A one-time settlement (OTS) scheme is a financial mechanism offered by banks to borrowers who are unable to repay their outstanding loans due to financial distress. It provides a practical solution for both banks and borrowers to resolve debt issues by agreeing on a lump sum payment that is typically less than the total amount due. The scheme aims to reduce the bank's non-performing assets (NPAs) and offer relief to borrowers, facilitating a quicker and more cost-effective resolution than prolonged litigation. Eligibility for OTS depends on the borrower’s financial situation and the bank's assessment. While advantageous in enabling debt recovery and providing borrower relief, OTS must be carefully managed to ensure fairness and prevent potential misuse.