DFS Secretary chairs key conference to reform debt recovery mechanisms

M. Nagaraju, Secretary, Department of Financial Services (DFS), on Saturday led a key conference with chairpersons of Debt Recovery Appellate Tribunals (DRATs) and chairpersons of Debt Recovery Tribunals (DRTs) in the capital. The meeting covered key issues related to debt recovery processes.

The focus was on improving recovery mechanisms through joint efforts of banks, financial institutions and tribunals. Emphasis was laid on the need for better monitoring and supervision by banks to manage the growing backlog of cases. Discussions highlighted adoption of best practices from effectively functioning DRTs to improve recovery rates and consistency across the country.

The conference also touched upon the issue of formulating separate rules for handling small and large cases for efficient allocation of resources. The new DRT rules, 2024, which promise a more efficient and transparent recovery process, were discussed. The participants included senior bank officials and representatives from the Ministry of Finance. (ANI)

(Based on information from the agency.)