Recovery Policy for Liquidators
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  • The liquidator would on receipt of appointment, prepare the claim list by first updating the depositor data base, name wise. This will be done on priority basis, well within the period stipulated as outer limit.
  • The liquidator would take stock of the balance sheet and other records and assess the cash, securities, easily realisable assets, fixed assets of the bank and prepare a plan for completing the recovery. He shall send a preliminary report to DICGC and copy to RCS. An action plan will be prepared for completing the liquidation proceedings.
  • The liquidator will seek the powers of liquidator in writing from RCS and inform the public that the process of submission of claim to DICGC has been completed and process of realisable asset identification has been started. He will segregate the assets charged to the failed bank, as recoverable and non- recoverable and prioritise the recovery accordingly. He will also start the process of valuing the securities and fixed asset, if not made and issue notices to all borrower's account which are due to make repayment to the failed bank under relevant provisions for recovery. The liquidator will continue the existing process for recovery done by the liquidated bank such as filing court cases, invoking of SARFAESI Act provisions as applicable and using other recovery powers conferred under the State Co-operative Societies Act.
  • Notification of asset sale will be predominantly put in the bank premises and in media as needed. All liquid assets will be sold off and realised within one year. Decision to retain minimum staff for the work and proceeding with closure of branches and selling fixed assets will be completed by first year. The mortgaged properties will be notified in revenue record books of government.
  • Auction process will be performed transparently by advertising, inviting quotations and processing if needed in presence of two officials from RCS. The asset recovery will be done on arms length basis without any of the liquidator or his relatives participating in auction. Involving government departments, other liquidators for taking committee approach for sale of assets may be made.
  • Process of liquidation of asset sale should be done within the period stipulated and not allow the assets fixed/floating -mortgaged or hypothecated deteriorate.
  • Inform DICGC of the developments and send quarterly statement regularly both to DICGC and RBI. DICGC will have, based on claim letter issued directing liquidation process, rights to call for any information from liquidator.
  • On completion of exercise of recovery and listing all untraceable depositors after paying money to DICGC, seek with approval of RCS for closure certificate and permission to write off. Pay-off to other creditors (non-insured depositors and others) will start after the process of paying claim to all depositors and repaying the liability to DICGC. The liquidator should ensure recovery within stipulated liquidation period.
  • Every effort is to be made for completing liquidation process at the earliest. The time limit stipulated for completion of liquidation may be adhered. Repayments from liquid funds should be on regular basis till the full amount is remitted to DICGC.