Unit - 28: Recovery of Debts due to Banks and Financial Institutions Act, 1993 (DRT ACT) Preliminary
Legal & Regulatory Aspects of Banking -
Unit - 28 : Recovery of Debts Due to Banks and Financial Institutions Act , 1993 Recovery of the dues from the borrowers through courts was a major cause of concern for the banks and Institutions due to huge log of pending cases with various courts . In 1991, Recovery of debts due to banks and Financial Institutions Act , 1993 (DRT ACT ) was passed and it came into operation from 24 June 1993 . This Act constituted the special ,' Debt Recovery Tribunals' for speedy recovery . The Act is applicable to debts above INR 10 Lakhs .
1. The Preamble to the DRT act describes the act as, ‘An act to provide the establishment of tribunals for expeditious adjudication and recovery of debts due to banks and financial institutions and for matters connected therewith . 2. The act is applicable to whole of India except J&K 3. Appellate Tribunal is established for the purpose of preferring appeal against the order passed by the Tribunal. 4. Application 5. Appointed Day 6. Chairperson 7. Debt 8. Financial Institution 9. Presiding Officer means the presiding officer of the DRT appointed under subsection(1) of Section 4 10. Recovery Officer appointed by the Government