New Delhi: In a significant move to bolster the efficiency of India’s debt recovery system, the Department of Financial Services (DFS) under the Ministry of Finance convened a colloquium of Chairpersons of Debt Recovery Appellate Tribunals (DRATs) and Presiding Officers of Debt Recovery Tribunals (DRTs) on May 24, 2025, at Vigyan Bhavan, New Delhi. The event was graced by Justice S.V.N. Bhatti, Judge of the Supreme Court of India, who delivered the keynote address, emphasizing the judiciary’s pivotal role in financial justice and recovery.
The colloquium brought together a wide array of stakeholders including senior DFS officials, public and private sector bank representatives, and members of the Indian Banks’ Association (IBA). The gathering focused on streamlining debt resolution mechanisms, reducing pendency of cases, and optimizing asset recovery processes through tribunal reforms.
🔍 Key Highlights and Reforms Discussed
✅ Revised DRT Regulations and e-Governance
The Secretary of DFS outlined several progressive reforms, notably the adoption of revised DRT Regulations (2024). Emphasis was placed on:
-
Mandatory e-filing of cases
-
Hybrid hearing systems (both physical and virtual)
-
Video conferencing options
These digital interventions aim to expedite adjudication and reduce case backlogs significantly.
✅ Prioritizing High-Value Recovery and Dispute Resolution
Discussions also centered on:
-
Prioritization of high-value cases to maximize recovery outcomes.
-
Promoting alternate dispute resolution (ADR) tools like Lok Adalats for faster case resolution.
-
Encouraging robust internal monitoring mechanisms within banks to enhance DRT effectiveness.
✅ Training, Oversight, and Reform
The colloquium emphasized:
-
Regular training for Presiding Officers and tribunal staff
-
Strengthened oversight mechanisms
-
Continuous reforms to reduce turnaround time in legal proceedings
These steps align with the government’s broader aim to create a transparent and responsive debt recovery ecosystem.
🤝 Call for Stakeholder Collaboration
A key message that resonated throughout the event was the need for collaborative action among banks, tribunal officials, and the financial ecosystem to reduce pendency and improve recovery rates. Stakeholders were encouraged to build a unified and efficient system that can unlock capital tied up in litigation and redeploy it for productive economic activities.
📝 Conclusion
The colloquium marked a crucial step in modernizing India’s debt recovery tribunals. With revised regulations, tech-driven reforms, and a focus on institutional capacity building, the DFS aims to streamline dispute resolution and boost financial system efficiency. By promoting proactive collaboration and robust legal infrastructure, the government continues its commitment to fostering a sound, efficient, and time-bound recovery mechanism, essential for India’s growing credit and banking sectors.
For more details, check press release on PIB website.
For more real time updates, visit Channel 6 Network.
