Does BoI accept structured OTS?

Yes — structured OTS with 3–6 tranches over 6–12 months is available for cases with clear source-of-funds evidence and adequate asset cover.

Who approves BoI MSME OTS?

The AGM (Recovery) at zonal office for most MSME cases. Larger exposures escalate to DGM / GM at Head Office.

How often does BoI launch OTS schemes?

Typically at quarter-end. Track branch and Zonal RM&L announcements for the latest circular.

How long does a BoI OTS take?

90–180 days on regular files; 60–90 days for scheme-eligible cases.

Bank of India · RM&L Vertical

Bank of India MSME Loan Settlement

AGM (Recovery), Zonal Office is the primary approver
Pan-India presence with structured zonal approvals
Special OTS schemes launched periodically

Free Case Assessment Talk to a Consultant

Bank of India (BoI) has a large pan-India MSME portfolio. Its Compromise Settlement Policy is Board-approved with clear zonal committee approvals and periodic Special OTS schemes.

The AGM (Recovery) at zonal office is the primary approving authority for MSME OTS. BoI accepts structured OTS — 3 to 6 tranches over 6–12 months — for cases with clear source-of-funds evidence and adequate asset cover.

Special OTS schemes rolled out quarter-end offer the fastest closure route where the case fits the scheme parameters.

Free Assessment

30-minute confidential case review

A senior consultant reviews your outstanding, NPA stage and options — no obligation, no cost. All conversations are covered by NDA.

• Waiver band estimate for your case
• Best-fit authority / branch to file at
• Risk of SARFAESI / auction escalation
• Documentation checklist

BoI OTS Policy — What Actually Governs Your Case

BoI's OTS runs through the RM&L vertical at zonal office. Regular files go to AGM (Recovery); scheme-eligible files should always try the Special OTS route first.

Board-approved Compromise Settlement Policy with RVS-based floor
Structured waiver matrix per exposure and NPA vintage
Periodic Special OTS schemes rolled out at quarter-end
Down-payment 10–25%; balance in 3–12 months

BoI Observed Waiver Bands by NPA Stage

NPA Stage / Route	Observed BoI Waiver Band	Down-Payment	Balance Window
Sub-standard (regular)	40–55%	10–25%	3–6 months
Doubtful (regular)	55–70%	10–20%	3–9 months
Loss Asset (regular)	60–80%	10–15%	3–12 months
Special OTS scheme	55–72%	10–20%	60–90 days

BoI Settlement Process — Step by Step

Step 1
Confidential Assessment
Case review — outstanding, NPA stage, security cover, promoter exposure. 30-minute consultation.
Step 2
Documentation & Hardship File
3-year financials, bank statements, GST, sanction letters, hardship narrative and source-of-funds evidence.
Step 3
OTS Proposal Drafting
Structured proposal referencing RBI framework, RVS working, precedent cases and payment schedule.
Step 4
Bank Submission
Proposal filed with the right authority — SAM branch / SARB / SAG / Regional Collections Head.
Step 5
Committee Negotiation
Follow-up, counter-offers, precedent deployment and final waiver / structure negotiation.
Step 6
Sanction & Payment
OTS sanction letter, down-payment, balance tranches, and receipt reconciliation.
Step 7
No Dues & Closure
No Dues Certificate, security release, CIBIL update, guarantor discharge.

BoI Recovery Approach & Escalation Ladder

BoI's Recovery Management & Legal (RM&L) verticals at zonal offices handle MSME NPA cases. AGM (Recovery) at zonal level is the effective approver.

Branch Manager — pre-NPA / small ticket
Chief Manager (RM&L) — routine MSME OTS
AGM (Recovery), Zonal Office — primary approving authority
DGM / GM, Head Office — larger or policy-band cases

SARFAESI at BoI — Practical Realities

BoI SARFAESI cadence tracks the PSU norm — 13(2) at 90–180 days NPA. Reply drafts engaging the likely RVS working buy meaningful time.

Post-13(4), auction stays available on filed OTS proposals under RM&L / zonal review. File with AGM (Recovery), Zonal Office directly.

Eligibility

Account classified as SMA-2, NPA sub-standard, doubtful or loss asset
Not tagged as wilful default or fraud
Realistic source of funds for at least the down-payment tranche
Willingness to sign a full and final settlement with the bank
Promoter/guarantor cooperation in documentation and negotiation
No parallel criminal / recovery proceedings that block settlement

Standard Documentation

• Latest sanction letter and all amendments / renewals
• 3-year audited financials (P&L, balance sheet, notes)
• Latest GST returns (12 months) and income-tax returns
• Complete bank statements — 24 months across all lenders
• CIBIL commercial and consumer reports (self and guarantors)
• Hardship narrative — cause and consequences of stress
• Source-of-funds evidence for OTS payment
• Security valuation report (secured cases)
• SARFAESI notices, DRT filings, correspondence trail

Bank-Specific Documents

• BoI sanction letter and NPA classification
• BoI Statement of Account (24 months)
• Latest Special OTS scheme circular
• 13(2) / 13(4) notices from BoI, if issued

BoI OTS — close-out window 90–180 days; scheme 60–90 days

Week 1–2
Assessment
Case diagnosis, document collection, hardship narrative drafted.
Week 3–4
Proposal Filed
OTS proposal submitted to competent authority with all annexures.
Week 5–10
Negotiation
Committee cycle, counter-offers, RVS reconciliation.
Week 11–16
Sanction & Payment
Sanction letter, down-payment, balance tranches.
Week 17–20
Closure
No Dues Certificate, security release, CIBIL update.

Settlement Calculator (Indicative)

Rough waiver band based on NPA stage. Actual outcome depends on bank, RVS, DPD and negotiation.

Outstanding (₹)NPA Stage

Estimated waiver band: 55%–70%

Indicative payable: ₹15,00,000 – ₹22,50,000

OTS Eligibility Checker

Quick 4-question check. Not a formal opinion.

Account is NPA (Sub-standard / Doubtful / Loss) or SMA-2 Account is tagged Wilful Default / Fraud Realistic source of funds for down-payment Promoter / guarantor cooperation available

Needs review — some flags reduce OTS eligibility. Speak with a consultant.

Case Studies

Manufacturing — ₹5.1 Cr at BoI Zonal RM&L, Mumbai

Thane manufacturer, ₹5.1 Cr doubtful. AGM (Recovery) cleared OTS at ₹2.45 Cr (52%) with 15% on sanction and 4 tranches over 6 months.

Trading — ₹2.8 Cr Sub-standard

Jaipur trading firm, ₹2.8 Cr sub-standard. OTS at ₹1.35 Cr (51.8%) with 15% down and 3 tranches over 4 months.

Auto Ancillary — ₹7.3 Cr Special OTS

Pune auto ancillary fitting a Special OTS scheme window. ₹7.3 Cr. Sanctioned at ₹2.95 Cr (59.6%) with 20% on sanction and balance in 75 days.

Client Voices

"Filed clean OTS with the right authority. Sanctioned in 4 months at 62% waiver."
— Rajesh K., Auto Ancillary Promoter

"Timely SARFAESI reply and structured OTS saved the shop unit. Closed with No Dues in 5 months."
— Anita S., Textile Trader

"Post-13(4) proposal filed with SAM branch — auction stayed and settled at 68% waiver."
— Vikram J., Food Processing

Frequently Asked Questions

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