Unit - 34: The Legal Services Authorities Act , 1987 : Lok Adalats
Legal & Regulatory Aspects of Banking -
Unit - 34 : Lok Adalats This Act came for settlement of disputes between parties . Lok Adalats are organised under the Legal Services Authorities Act, 1987.
The monetary ceiling of amount for settlement through Lok Adalat is INR 20 Lakh. The main advantage for banks / Financial Institutions in using the forum of Lok Adalats is settlement of their NPAs by compromise.