NEW DELHI: Finance ministry has asked banks to have a clearly defined policy for small and high-value cases pending in Debt Resolution Tribunals (DRTs) for ‘optimising’ recovery. The ministry has also asked the banks to put in place effective monitoring and oversight mechanisms for management of pending cases in DRTs.
These instructions were given to banks in a conference chaired by M Nagaraju, secretary, the Department of Financial Services (DFS), Ministry of Finance on Saturday in New Delhi. Chairpersons of Debt Recovery Appellate Tribunals (DRATs) and presiding officers of Debt Recovery of Tribunals (DRTs) also attended the meeting.
During the meeting, a whole gamut of issues were discussed concerning the functioning of DRTs and ways to make recovery procedures more efficient. The meeting also discussed some of the best practices followed in DRTs, which can be adopted across DRTs for better outcome. In the meeting, the banks were also instructed to take into account the transaction costs while pursuing pending recovery cases.