Banks to Streamline DRT Processes for Faster Recovery

New Delhi- A conference of Chairpersons of Debt Recovery Appellate Tribunals (DRATs) and Presiding Officers of Debt Recovery of Tribunals (DRTs) was held at New Delhi on Saturday.

During the meeting, it was agreed that banks would put in place effective monitoring and oversight mechanisms for efficient management of pending cases in DRTs, adopt best practices from across DRTs for better outcomes, have clearly defined policies for small and high-value cases pending in DRTs to optimize recovery, and take into account transaction costs when formulating settlement policies for pending recovery cases.

The conference was chaired by Department of Financial Services (DFS) Secretary M. Nagaraju. The conference discussed a variety of issues, including the functioning of DRTs and the steps that can be taken to make the recovery procedure more efficient.

It was resolved that banks should put in place effective monitoring and oversight mechanisms for the efficient management of pending cases in DRTs. The banks also agreed to have a clear policy for small and high-value cases pending in DRTs in order to improve the chances of recovery. In addition, banks were directed to take into account the transaction costs carefully while pursuing pending recovery cases.

All stakeholders were urged to work together to reduce pendency and take effective measures to optimise the recovery process in order to recover the capital stuck in pending cases and subsequently contribute to the economic growth of the country. The new DRT Regulations 2024, which provide for a number of enhanced features, will be adopted by all DRTs across the nation in order to make the DRT process more effective and less time-consuming.