DFS Pushes Faster Debt Recovery; e-Filing, Hybrid Hearings and e-DRT 2.0 Take Centre Stage
Colloquium of DRAT, DRT heads focuses on cutting pendency, boosting recovery through digitisation and procedural reforms
The meeting brought together senior DFS officials, representatives from public and private sector banks, and the Indian Banks’ Association to review performance and chart reforms aimed at strengthening the debt recovery framework.
New Delhi: The Department of Financial Services convened a high-level colloquium of Chairpersons of Debts Recovery Appellate Tribunals and Presiding Officers of Debts Recovery Tribunals at Vigyan Bhavan, with a sharp focus on reducing case pendency and accelerating debt recovery.
The meeting brought together senior DFS officials, representatives from public and private sector banks, and the Indian Banks’ Association to review performance and chart reforms aimed at strengthening the debt recovery framework.
Addressing the gathering, the DFS Secretary emphasised the need to enhance efficiency through deeper digitisation and procedural streamlining. Mandatory e-filing, hybrid hearing systems and ongoing upgrades under the e-DRT 2.0 platform were highlighted as key enablers for faster and more transparent case disposal.
Officials noted that targeted capacity-building initiatives and infrastructure strengthening have already led to improved monthly disposal rates across several tribunals. High-performing DRTs were cited as benchmarks, with others encouraged to adopt similar practices.
The discussions also focused on improving oversight mechanisms within banks to strengthen recovery processes, prioritising high-value cases, and leveraging alternative dispute resolution mechanisms such as Lok Adalats for quicker settlements. Participants were advised to identify suitable cases – both pending and new – for mediation to further reduce backlog.
On the technology front, stakeholders were urged to maximise the use of digital tools, including the revamped BAANKNET e-auction platform, which is enhancing asset visibility and aiding better value realisation during recovery proceedings.
The colloquium is part of DFS’s ongoing efforts to create a more robust, transparent and efficient adjudication ecosystem for debt recovery, at a time when timely resolution of stressed assets remains critical for banking sector stability.
