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Informist, Tuesday, Dec. 30, 2025

 

NEW DELHI – Department of Financial Services Secretary M. Nagaraju Tuesday discussed wide-ranging issues to enhance the effectiveness of the recovery process in debt recovery tribunals, and called for measures to further strengthen the monitoring and oversight mechanism of banks for increasing recovery. 

 

In a colloquium organised by the finance ministry, Nagaraju met chairpersons of debt recovery appellate tribunals, presiding officers of debt recovery tribunals, and representatives from public and private sector banks and the Indian Banks' Association, the finance ministry said in a release. 

 

Nagaraju asked stakeholders to focus on high-value cases in tribunals to optimise recovery, make optimum use of 'Lok Adalats' as an alternate dispute resolution mechanism for expeditious disposal of cases, and also pitched for further process reforms to improve disposal of cases.

 

According to the ministry, the banking secretary also said that capacity building measures will be taken by the Department of Financial Services and banks, including structured training programs for presiding officers, recovery officers, registrars and authorised officers of banks to improve recovery. 

 

"The discussions were held on the suggestions regarding amendments to the Recovery of Debts and Bankruptcy Act, 1993 and Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, in order to further enhance the effectiveness of these laws," the ministry said. "The tribunals were urged to learn from the best practices followed in other DRTs (debt recovery tribunals) where disposal is impressive." 

 

This comes against the backdrop of limited success of debt recovery appellate tribunals in helping banks and financial institutions recover their dues. Cases worth around INR 13 trillion were pending with tribunals as of September 2024, with only a slight recovery seen in high-value cases in the last one-and-a-half years.

 

The government has been stepping up its measures to facilitate quicker recoveries, including announcing in the Budget for 2024-25 (Apr-Mar) a plan to set up more debt recovery tribunals. "Steps for reforming and strengthening debt recovery tribunals will be taken. Additional tribunals will be established to speed up recovery," Finance Minister Nirmala Sitharaman had said.  End

 

Reported by Priyasmita Dutta

Edited by Tanima Banerjee

 

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