KOCHI: Positive aspect of the demonetisation, slowly emerging is that loan defaulters are suddenly showing interest in settling money they owe to the banks.“The recent turn of events is definitely going to help the bankers recover large liabilities. Defaulters can use the banned notes to repay their loan. Suppose they don't pay, the bad loans will remain with them and if they pay, they will be rid of liability and hence, they have started settling the loans.On Friday, we made recovery in a bad account in Lucknow ­ the defaulter came and straight away paid us Rs 3 crore.It was all in 500s and 1000s,“ said G Sreeram, managing director and CEO of Dhanlaxmi Bank.“Government of India wants everything to be tracked ­ and here, somebody has taken the loan, repaid it and has a source to show. So we are anticipating some good recoveries to be done, especially in medium type accounts,“ Sreeram said.A senior official with the South Indian Bank , headquartered in Thrissur, also confirmed the trend.“Recovery of bad loans is going to happen as a result of the demonetisation, even if it is in a limited way. In Tamil Nadu, one of the defaulters who had avoided all chances of settling his debt suddenly paid the initial token amount for his bad loan of Rs 50 lakh.There are few other accounts of the similar nature, where the defaulters are inquiring the possibility of settling the loans with the old currency,“ he said.