CGTMSE Ref. No. (44)/2430 May 12, 2016



All Member Lending Institutions of CGTMSE

Circular No.113 / 2016 - 17

Dear Sir/Madam,

Credit Guarantee Scheme (CGS) –
Introduction of new module for Updating Recovery Details

As you are aware, in terms of Chapter VI, Point No. 13, of Credit Guarantee Scheme of CGTMSE, the recoveries made by MLIs from the defaulting borrowers post settlement of 1st/2nd claim by CGTMSE are required to be passed on to CGTMSE in full after netting off the legal expenses. Also when the refund of first installment of claim released by CGTMSE is being passed on by the MLI, MLI has to pass the gross amount (including ASF) without netting off any expenses. Upon receipt of such recovery, CGTMSE works out the net loss and shares the recovery so passed on by the MLIs, with the respective MLI in the given proportion. Such recoveries are presently passed on by MLIs by means of Demand Drafts.

With a view to automate the process of receipt of recovery from MLIs, effecting one time settlement or closure of CGPAN, it has been decided to create an online module in CGTMSE portal whereby MLIs will feed the recovery/payment details pertaining to the each CGPAN whose 1st/2nd installment of claim has been settled. The MLIs will then be allowed to lodge the application for the second / final installment of claim provided other scheme guidelines with regard to release of 2nd installment are complied with.The process for updating the recovery details in CGTMSE portal is given in the Annexure.

The above module for Updating Recovery Details has been made live and can now be operated by the MLIs. MLIs can use their existing user ids for this module also. Any difficulties encountered shall be mailed to us at secondclaim@cgtmse.in with a cc to shrutis@cgtmse.in for solution.

We request you to kindly bring the contents of this Circular to the notice of all your offices

                                                                                                                                 
Yours faithfully,

(S.S.Bakshee)
General Manager

 

 

Annexure
  1. Recovery module will be mainly updated by the MLIs for those units where 1st installment has been settled by CGTMSE.
  2. By using their existing user ID and password, MLI will login into the CGTMSE portal and update the recovery details by using the path:
    Claim Processing → Update Recovery Info
  3. By giving the required claim reference number, a form will open where information like linked CGPAN(s), Unit Name, 1st installment amount, Recovery amount already remitted to CGTMSE (if any) etc. related to the respective claim reference number will be populated by the CGTMSE system. MLI then needs to choose the type of recovery from the drop down provided and fill in the amounts in "Total Recovery" and "legal expenses" columns.
  4. To proceed further MLI will then have to tick on the check box given in the 'Pay' column for those units for which payment needs to be passed on to CGTMSE.
  5. In case the recovery in respect of more than one claim reference number is to be updated by the MLI, an option 'Add More +' is provided where the MLI will have to click and after giving the claim reference number, continue feeding other details as was done in the earlier case.
  6. After ticking the 'Pay' check box, MLI can view the total amount to be remitted by clicking on the button 'Show Total Remitted Amount'. The system will then proceed to the "Payment Section" once the MLID user clicks the 'Payment / Save' button. The system will proceed to the next screen viz. 'payment details' only in cases where 1st claim has been settled by CGTMSE.
  7. If by mistake MLI feeds wrong Claim reference number, than MLI will not tick the 'Pay' check box. System will automatically ignore the details fed against the claim reference number and will not save any data for that claim reference number.
  8. In the payment details screen, MLI will have to give all the payment related information like mode of payment, payment date, Instrument Number / UTR number, Instrument date, drawn at bank / branch etc. The MLIs are expected to feed the transaction details in the Recovery Module only after passing on the respective recovery amount to CGTMSE either by means of DD or by RTGS / NEFT since DD No. / UTR No. is required to be fed in the 'Payment Details' of the Recovery Module.b> Instrument / RTGS amount will be pre-filled by the system from the 'Total amount' in the recovery table. It is reiterated that this part of the process will be applicable only where 1st claim has been settled by CGTMSE.
  9. After clicking the save button an alert, confirming the information; 'Total amount; DD/RTGS amount; DD/UTR number will appear with confirm and cancel options. After confirming, the transaction will be processed. After the receipt and appropriation of recovery, as received from MLIs by CGTMSE, the unit will be eligible for second / final installment provided other scheme guidelines with regard to release of 2nd installment are complied by the MLI.
  10. In case of OTS / partial recovery, MLI can update the recovery information for the respective Claim reference number multiple times in the Recovery Module till the entire recovery has been passed on by the MLI.
  11. A periodic report, CGPAN wise, will be generated giving the information regarding recovery passed on by the MLI to CGTMSE.

MLIs can also use the 'Recovery Module' to feed / correct the recovery amount already fed in the claim form for cases where the claim has been lodged, however 1st installment of claim has not been settled, by using the same process as mentioned above. However, MLI here will have to feed only the total recovery received (recovery already made (as indicated in the claim form) + new recovery (if any)) and the same will be updated in the claim form. For such cases, after updating the Recovery amount and ticking on the 'pay' checkbox, MLI will save the data by clicking on the Payment / Save button. For these cases, next screen viz. 'payment details' will not open and the system will automatically update the recovery amount already indicated in the claim form. Please note that recovery, in such case, need not be passed on to CGTMSE since the 1st installment of claim shall be settled by CGTMSE based on the revised outstanding amount.