DRTs Told To Make Recovery Procedure More Efficient
Banks to put in place effective monitoring and oversight mechanism for efficient management of pending cases in DRTs
The meeting was attended by senior officers from the public and private sectors banks, Deputy Chief Executive Officer (CEO), Indian Bank Association (IBA) and senior officers from the Ministry of Finance.
Shri M. Nagaraju, Secretary, Department of Financial Services (DFS) chaired a Conference of Chairpersons of Debt Recovery Appellate Tribunals (DRATs) and Presiding Officers of Debt Recovery of Tribunals (DRTs) at New Delhi, today.
The meeting was attended by senior officers from the public and private sectors banks, Deputy Chief Executive Officer (CEO), Indian Bank Association (IBA) and senior officers from the Ministry of Finance.
During the meeting whole gamut of issues were discussed concerning the functioning of DRTs and in order to make recovery procedure more efficient, it was agreed that:
- Banks to put in place effective monitoring and oversight mechanism for efficient management of pending cases in DRTs
- Some of the best practices followed in DRTs were also discussed which can be adopted across DRTs for better outcome.
- Banks to have clearly defined policy for small and high value cases pending in DRTs for optimising the recovery.
- While formulating settlement policy, banks to take into account the transaction costs in mind while pursuing pending recovery cases.
- All stakeholders to work collectively to reduce pendency and take effective measures for optimisation of recovery which would help in ploughing back the capital stuck in pending cases to the economy for productive use.
- DRT Regulations 2024 which have number of improved features over the earlier DRT Regulation 2015 to be adopted by all DRTs with an objective to make the DRT process more effective and less time consuming.
