All interactions with borrowers would normally be at the borrowers’ location or at the SIDBI’s office at convenient timings, to the extent possible, during the working hours of the Bank.

Even though the primary responsibility of making payment of dues remains with the borrower, SIDBI issues Demand Advices to ensure proper and timely communication of dues payable by the borrower so as to set up a smooth recovery channel. Though not mandatory, Demand Advices are normally delivered to the borrower well in advance and indicate the updated position of dues.

Since timely restructuring helps in preventing further deterioration of the account, a decision on the restructuring proposal is endeavoured to be taken preferably within 3 months of receipt of the proposal with complete information.

In respect of restructuring proposals, the package is generally finalised in consultation with other lenders. Cases eligible for coverage under the Corporate Debt Restructuring (CDR) System are intended to be referred to the CDR Cell.

In the NPA cases where the borrower unit / company may be facing long term problems with structural deficiencies and may not be able to operate on sustained profitable lines, including non-viable sick / closed units, One Time Settlement (OTS) option is explored as an exit route. In case of units in operation, but not found to be in a position to generate adequate surplus to service the debt on a long term basis even after examining the possibility of restructuring, OTS option would be considered on merits.

Reasonable notice would be given to borrowers before takeover of security.

In respect of assets taken over, wherever there is a possibility of restructuring or compromise settlement of dues in view of factors like seriousness evinced by the borrower to clear the dues, desirability of putting productive assets into proper use, etc., handing back the possession of the unit to the borrower would be considered under a trusteeship arrangement, pending receipt of OTS payment / implementation of the package approved.

In case of disputes, support and cooperation is extended to resolve the difficulties as regards settlement of dues in a mutually acceptable manner within the spirit of underlying contractual obligations of both parties.