DFS Secretary Chairs Key Conference to Revamp Debt Recovery Mechanisms

The DFS Secretary chaired a conference with DRAT and DRT leaders to address debt recovery efficiency, focusing on reducing case backlogs and rolling out the new DRT Regulations 2024. Key issues included adopting best practices, improving monitoring, and collaborative recovery efforts among banks and financial institutions.

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

The focus was on streamlining recovery mechanisms through collaborative efforts involving banks, financial institutions, and tribunals. Emphasis was placed on the need for improved monitoring and oversight by banks to manage the rising backlog of cases. Discussions highlighted the adoption of best practices from effectively functioning DRTs to improve recovery rates and consistency nationwide.

The conference also touched on formulating distinct policies for handling small and high-value cases, aiming to allocate resources efficiently. New DRT Regulations 2024 were discussed, which promise a more effective and transparent recovery process. Attendees included senior banking officials and representatives from the Ministry of Finance. (ANI)

(With inputs from agencies.)