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Monetary limit increased for Loan recovery application
September 9 , 2018
2140 days
848
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- Union government doubled the monetary limit from Rs. 10 lacks to Rs. 20 lakhs for filing loan recovery application in the Debt Recovery Tribunals (DRTs) by banks and financial institutions, to help reduce pendency of such cases.
- As a result, any bank or financial institution or a consortium of banks or financial institutions cannot approach DRTs if the amount due is less than Rs. 20 lakhs.
Debt Recovery Tribunals (DRT)
- DRTs were first set up under the Banks and Financial Institutions Act 1993 to facilitate debt recovery by involving banks and other financial institutions with their customers.
- DRT is supposed to dispose of the matter referred to it within 180 days of receipt of application and appeal can be filed against DRT order with Debt Recovery Appellate Tribunals (DRATs).
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