Cgtmse claim

om (Querist) 31 January 2017 This query is : Resolved
I have taken a loan under cgrmse cover.bank has charged the cgtmse fees from my accout regurarly. now my account is in a npa stage. the bank has not propely claimed from cgtmse.when i asked about that , they said cgtmse is not the matter of the party.my query is when i am paying the cgtmse fees, the recovery amout paid by cgtmse to bank will be reflected in my account or not.
Is there any judgement for pass on of cgtmse fees by bank to partyy

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J K Agrawal (Expert) 31 January 2017
It will not reflect in your account. The CGTMSE is not meant to deposit amount for your default. If it is so, nobody will bother to repay loan amount.

Rather you try to deposit your dues and forget CGTMSE. The bank is duty bound to recover money from you up to last moment. When all the remedy exhausted by bank and it goes to write off your loan amount as bad debts, It will bag like a bagger from CGTMSE and then CGTMSE, after a lot of queries and a lot of round to its office, will give to your bank only up to 65% of bad debts.

So reflect money in your account at your own.