Here's a detailed overview of the OTS process:

1-Identification of Eligible Accounts: Identify accounts that are eligible for OTS, which typically include accounts that have been classified as Non-Performing Assets (NPAs) and where recovery through regular means seems difficult.
2-Proposal for Settlement: The bank proposes a one-time settlement amount to the borrower. This amount is usually less than the total outstanding dues but is considered a fair compromise to recover a portion of the loan.
3-Negotiation and Agreement: The borrower and the bank negotiate the settlement amount. Once both parties agree on the terms, a formal agreement is drafted outlining the settlement amount and the payment terms.
4-Payment of Settlement Amount: The borrower is required to pay the agreed settlement amount within a specified period. This payment can be made in a lump sum or in installments, depending on the agreement.
5-Closure of Account: Upon receipt of the full settlement amount, the bank closes the loan account and issues a No Objection Certificate (NOC) to the borrower. This indicates that the borrower has settled the dues as per the OTS agreement.
6-Reporting to Credit Bureaus: The bank updates the borrower's credit report to reflect the settlement. While the account is marked as settled, it may still impact the borrower's credit score.
7-Monitoring and Compliance: The bank ensures that all terms of the settlement are complied with and monitors the process to prevent any discrepancies.

The OTS process helps recover a portion of the dues, while providing borrowers with an opportunity to settle their debts at a reduced amount.