Please refer to our Circular UBD.BPD. (PCB) Cir. No.40/13.05.006/2012-13 dated March 7, 2013, in terms of which Urban Co-operative Banks (UCBs) were advised to conduct complete verification of list of beneficiaries under ADWDRS, 2008 and take corrective steps as indicated therein. In this connection, attention of UCBs is invited to para 1(iii) thereof, wherein it was advised that cases of extending benefits to ineligible beneficiaries must be dealt with on top priority and full recoveries as per law must be made to avoid any loss to the exchequer and it will be the personal responsibility of the institutional head to ensure that such recoveries are effected in full.
2. It is observed that although the cases and amounts of undue benefits have been identified, the recovery process is quite slow and banks are yet to refund to Reserve Bank of India, the amount identified by them. You are therefore, advised to complete the recovery process by refunding the identified amount without any further delay and adjust the amount in the books of account as and when recovery is effected in cases of the following categories pointed out by CAG –
Benefits granted to ineligible borrowers,
Excess benefits extended to borrowers and
Charges/Interest claimed/ debited.
3. You may speed up the refund process in pending non-CAG cases also and refund both the amounts to the Regional Office of Reserve Bank of India concerned, on or before December 20, 2013.