PANAJI
In a bid to help credit co-operative societies identify fraudsters, the State government has proposed to launch a mobile app that will assist the societies in zeroing in on loan defaulters at multiple banks. The app is expected to be introduced by March 31, 2024.
Chief Minister Pramod Sawant said that the app is poised to bring in a much-needed revolution in the credit society sector as it will act as a powerful tool to proactively identify potential loan defaulters and fraudulent individuals.
Sawant was speaking during the inauguration of the new building premise of Sankhali Urban Co-operative Credit Society Ltd. Explaining the proposal, the Chief Minister said that the app will alert the cooperative society whether the person who has applied for loan has already taken loans with other financial institutions.
“There are some individuals or businesses that are involved in taking loans at multiple banks or credit societies and then default them. There are instances where individuals exploit credit societies or bank by neglecting the repayment of loan amount,” he said.
“It’s people’s money. No one will be allowed to embezzle it. We need to work out a mechanism to catch hold of these fraudsters,” he added. Sawant said that the move will also help in minimizing the non-performing assets (NPAs) of the societies.
Sawant, who is also Home Minister, said that directions will be issued to the home department to make action under Section 138 of the Negotiable Instruments Act more stringent.
“All the violators who have duped credit co-operative societies and against whom a warrant is issued can be arrested. This will also help us in recovering the money,” he said.
