The Finance Ministry held a high-level meeting to discuss the expedited recovery of debt and the efficiency of debt recovery tribunals. The meeting was chaired by Vivek Joshi, the Secretary of the Finance Ministry’s Department of Financial Services, and attended by Chairpersons of Debt Recovery Appellate Tribunals (DRATs) and Presiding Officers of Debt Recovery Tribunals (DRTs), as well as senior officers from Public and Private Sectors Banks, CEO of Indian Bank Association (IBA), and officers from the Ministry of Finance and Insolvency and Bankruptcy Board of India (IBBI).
During the meeting, the main issues discussed included the need for DRTs and DRATs to take steps to reduce pendency, suggestions regarding changes and amendments in Debts Recovery Tribunal Regulations, SARFAESI Act and RDB Act to make the recovery process more efficient, conducting periodic reviews of the performance of empanelled Advocates, leveraging the e-Auction platform for property listings and auctions, reconciling settled cases pending in DRTs and DRATs, and ensuring the presence of bank officers at all hearings.
The meeting aimed to find ways to streamline and expedite the debt recovery process, making it more efficient and effective. The participation of representatives from various banks, financial institutions, and regulatory bodies demonstrates the commitment to addressing the challenges in debt recovery and finding practical solutions to improve the system.
The discussion of steps to enhance the efficiency of debt recovery tribunals is crucial in addressing the issue of mounting bad debts and non-performing assets in the banking sector. It is essential for the stakeholders to work collaboratively and implement measures to expedite the recovery process and reduce the burden of non-performing loans on the banking system. The outcome of this high-level meeting is expected to lead to practical reforms in the debt recovery process, benefiting both the financial institutions and the economy as a whole.
